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R&D intensity

About: R&D intensity is a research topic. Over the lifetime, 562 publications have been published within this topic receiving 42582 citations. The topic is also known as: ar & Romeo.


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Journal ArticleDOI
TL;DR: In this paper, the authors argue that the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovative capabilities.
Abstract: In this paper, we argue that the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovative capabilities. We label this capability a firm's absorptive capacity and suggest that it is largely a function of the firm's level of prior related knowledge. The discussion focuses first on the cognitive basis for an individual's absorptive capacity including, in particular, prior related knowledge and diversity of background. We then characterize the factors that influence absorptive capacity at the organizational level, how an organization's absorptive capacity differs from that of its individual members, and the role of diversity of expertise within an organization. We argue that the development of absorptive capacity, and, in turn, innovative performance are history- or path-dependent and argue how lack of investment in an area of expertise early on may foreclose the future development of a technical capability in that area. We formulate a model of firm investment in research and development (R&D), in which R&D contributes to a firm's absorptive capacity, and test predictions relating a firm's investment in R&D to the knowledge underlying technical change within an industry. Discussion focuses on the implications of absorptive capacity for the analysis of other related innovative activities, including basic research, the adoption and diffusion of innovations, and decisions to participate in cooperative R&D ventures. **

31,623 citations

Journal Article
TL;DR: In this paper, the authors investigated how financial development affects aggregate productivity growth and showed that the level of financial development is good only up to a point, after which it becomes a drag on growth.
Abstract: This paper investigates how financial development affects aggregate productivity growth. Based on a sample of developed and emerging economies, we first show that the level of financial development is good only up to a point, after which it becomes a drag on growth. Second, focusing on advanced economies, we show that a fast-growing financial sector is detrimental to aggregate productivity growth.

624 citations

Journal ArticleDOI
TL;DR: In this article, the authors provide empirical evidence that choice of diversification strategy systematically affects R&D intensity in large multiproduct firms, and find that diversification strategies systematically affect research and development intensity in dominant companies.
Abstract: This study provides empirical evidence that choice of diversification strategy systematically affects R&D intensity in large multiproduct firms. Research and development intensity in dominant-busin...

589 citations

ReportDOI
TL;DR: In this article, the authors investigate the Schumpeterian hypothesis that large size is conducive to R&D investment and innovation and find that the effect of market concentration on research and development investment and on innovative performance is negligible.
Abstract: Using data from the Federal Trade Commission's Line of Business Program and survey measures of technological opportunity and appropriability conditions, this paper finds that overall firm size has a very small, statistically insignificant effect on business unit R & D intensity when either fixed industry effects or measured industry characteristics are taken into account. Business unit size has no effect on the R & D intensity of business units that perform R & D, but it affects the probability of conducting R & D. Business unit and firm size jointly explain less than one per cent of the variance in R D industry effects explain nearly half the variance. Two SETS of well-known hypotheses are associated with the later work of Joseph Schumpeter. The first concerns the effects of market concentration on research and development investment and on innovative performance. The second bears on the effects of firm size on R & D and innovation. In a recent paper (Levin, Cohen, and Mowery [1985]), we re-examined the first set of hypotheses. Simple regressions at the line of business level replicated the established findings that both R & D intensity and innovative performance first increase and then decrease as industrial concentration rises. The effect of concentration, however, was sharply attenuated when we controlled for interindustry differences in technological opportunity and in the appropriability of returns from new technology. Our results suggested that it is probably unwarranted to conclude that market concentration favors R & D investment and innovation. In this paper we investigate the Schumpeterian hypothesis that large size is conducive to R & D investment. This relationship has been studied at least as intensively as the link between concentration and R & D, but our approach is novel in two respects. First, using data collected by the Federal Trade

377 citations

Journal ArticleDOI
TL;DR: In this paper, a study of 184 major U.S. firms suggests that incentives based on short-term (annual) division financial performance are negatively related to total firm R&D intensity after controlling for industry R&DI intensity, firm diversification, size and group structure.
Abstract: Incentives for division managers in large firms affect their risk orientation and thus their decisions to invest in R&D. This paper reviews theory and hypothesizes that division managers' incentive compensation that is based on financial performance is negatively related to risk taking as measured by R&D intensity. Results of a study of 184 major U.S. firms suggest that incentives based on short-term (annual) division financial performance are negatively related to total firm R&D intensity after controlling for industry R&D intensity, firm diversification, size and group structure. Furthermore, the results suggest that an emphasis on long-term financial incentives may mitigate the negative relationship between these incentives and R&D intensity, but does not promote risk taking. The results suggest the importance of emphasizing strategic controls [evaluating division managers based on operational understanding of strategies proposed (strategic criteria)] as opposed to the use of financial controls [evalua...

337 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
20241
202320
202245
202152
202032
201932