Corporate Restructuring and R&D: A Panel Data Analysis for the Chemical Industry

  • Ashish Arora
  • Marco Ceccagnoli
  • Marco Da Rin


We provide a novel approach to the existing literature on the effects of restructuring on R&D investment by focusing on a single industry, chemicals. The chemical industry is very research intensive and has experienced thorough restructuring since the early 1980s. By focusing on a single industry we are able to identify the technological and R&D features of its segments. This is important, since there is evidence that restructuring affects R&D differently in businesses with different technological features. However, no study so far has provided a systematic inquiry into this link. Using a panel of 535 European, American, and Japanese firms for the years 1987–1997 we find restructuring to be an important component in the observed changes in R&D intensity. We show that restructuring affects R&D both through changes in size and through changes in the composition of business portfolios, and that these effects differ across industry segments.

Key words

Restructuring Process Innovation Chemical Industry 


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Copyright information

© Kluwer Academic Publishers 2004

Authors and Affiliations

  • Ashish Arora
    • 1
    • 2
  • Marco Ceccagnoli
    • 1
    • 2
  • Marco Da Rin
    • 1
    • 2
  1. 1.INSEADCarnegie Mellon UniversityUSA
  2. 2.ECGI and IGIERTurin UniversityItaly

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