Is firm size conducive to R&amp;D choice? A strategic analysis of product and process innovations

Yin, Xiangkang; Zuscovitch, Ehud

doi:10.1016/s0167-2681(98)00057-2

Cited by 71 publications

(35 citation statements)

References 10 publications

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“…Cohen and klepper (1996) [3] found that process and product innovation systematically differ regarding the extent to which they can be sold in disembodied form and generate discontinuous growth. More generally the finding also supported the basic idea that larger firms had an advantage in R&D because of the larger output over which they can apply the results-thus spread their costs-of their R&D. Yin and Zuscovitch (1998) [4] combined theory with model derivation and found that large companies were more inclined to process innovation, inversely small businesses tend to product innovation. Therefore, large companies dominated in the original product market.…”

Section: Literature Reviewsupporting

confidence: 53%

The Effect of Firm Size on Regional Innovation Efficiency in China

Mei¹,

Wen²

2016

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The paper uses panel data of 30 provinces in China from 1998 to 2012 to calculate their innovation efficiency by DEA model. Meanwhile we use Tobit model to discuss the effect of firm size on regional innovation efficiency. In order to solve endogeneity problem, we choose an instrumental variable to replace firm size. Although from Figure 2, firm size and innovation efficiency show an inverted U-shaped relationship, at this stage enterprises in China are usually small, which leads most of them stay at the left side of inverted U-shaped curve. Our main conclusion is that at this stage in China, firm size and innovation efficiency have a linear relationship. Other variables such as dependence on trade, level of urbanization and education also have positive effect on innovation efficiency.

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Section: Literature Reviewsupporting

confidence: 53%

The Effect of Firm Size on Regional Innovation Efficiency in China

Mei¹,

Wen²

2016

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“…Despite the substantial body of research on the determinants and effects of innovation, surprisingly little is known about the decision-making process of the innovation decision. Since the early observations by Abernathy and Utterback (1982) that the distribution of firms' resources between product and process innovation depends on the market phase of the relevant technology, there has been an advance in the theoretical literature which examines the product/process mix (Klepper, 1996;Yin and Zuscovitch, 1998;Rosencranz, 2003). But this has not been reflected in the empirical work on the microeconomics of innovation, where it is still common to proceed as if firms concentrate wholly on product innovation.…”

Section: Introductionmentioning

confidence: 99%

The innovation decision: An economic analysis

Love

Roper

2007

Technovation

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Studies of the determinants and effects of innovation commonly make an assumption about the way in which firms make the decision to innovate, but rarely test this assumption. Using a panel of Irish manufacturing firms we test the performance of two alternative models of the innovation decision, and find that a two-stage model (the firm decides whether to innovate, then whether to perform product-only, process-only or both) outperforms a one-stage, simultaneous model. We also find that external knowledge sourcing affects the innovation decision and the type of innovation undertaken in a way not previously recognised in the literature.

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“…3 A building block in our analysis is a model of non-tournament R&D competition amonḡ rms that di®er in their R&D technologies, and this model is in itself a novelty. 4 The models of R&D competition that are closest to ours in the received literature are by Rosen (1991), Poyago-Theotoky (1996), and Yin and Zuscovitch (1998). However, in these models,¯rms have identical R&D technologies and di®er only in their initial, or pre-R&D, production costs.…”

Section: Introductionmentioning

confidence: 87%

Industrial Policy and Firm Heterogeneity

Barros

Nilssen

1999

Scandinavian J Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractOur concern is with a¯rm-speci¯c industrial policy. When R&D subsidies or taxes are di®erentiated among¯rms, the question arises which¯rms in an industry should receive such support. We analyze a situation where¯rms di®er in their R&D technologies in two distinct ways: They di®er both in the costs of performing R&D activities and in the output obtained from such activities. We¯nd that the optimal¯rm-speci¯c industrial policy is a®ected di®erently by the two sources of¯rm heterogeneity. Furthermore, a change in ā rm's R&D productivity has an ambiguous e®ect on the optimal policy towards the¯rm.JEL Numbers: O31, L52, F13

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Is firm size conducive to R&D choice? A strategic analysis of product and process innovations

Cited by 71 publications

References 10 publications

The Effect of Firm Size on Regional Innovation Efficiency in China

The Effect of Firm Size on Regional Innovation Efficiency in China

The innovation decision: An economic analysis

Industrial Policy and Firm Heterogeneity

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