R&D Activities at the Firm Level
It is often said that the relatively weak performance of the Belgian economy in terms of innovativeness is due in part to the comparatively small average size of its firms and the scarcity of home-based multinational corporations. The question whether firm size is related to R&D intensity is, therefore, of particular importance for a country like Belgium. This section describes some aspects of the orientation of R&D activities of Belgian firms beginning with the distribution of the R&D activities of firms in several components: research versus development, process versus product innovation, and capital- versus labour-intensive R&D (Section 5.2). The Schumpeterian hypothesis concerning firm size and innovativeness is examined in Section 5.3. This section also includes a first analysis of the relationship between firm size and innovativity, as measured by the percentage of ‘new products’ in total sales. We conclude in Section 5.4.
KeywordsFirm Size Small Firm Large Firm Firm Level Total Sale
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