Journal ArticleOpen Access
Internal Versus External R&D: A Study of R&D Choice with Sample Selection
Authors
Author Affiliations
Queen's University Belfast, Queens University
Published InInternational Journal of the Economics of Business
Year2002
Citations83
Abstract
This paper extends previous analyses of the choice between internal and external R&D to consider the costs of internal R&D. The Heckman two-stage estimator is used to estimate the determinants of internal R&D unit cost (i.e. cost per product innovation) allowing for sample selection effects. Theory indicates that R&D unit cost will be influenced by scale issues and by the technological opportunities faced by the firm. Transaction costs encountered in research activities are allowed for and, in addition, consideration is given to issues of market structure which influence the choice of R&D mode without affecting the unit cost of internal or external R&D. The model is tested on data from a sample of over 500 UK manufacturing plants which have…
View at Publisher
BORR does not host full-text PDFs. The button above takes you to the original publisher.
Fields & Keywords
Social SciencesEconomics, Econometrics and FinanceEconomics and EconometricsInnovation Policy and R&DEconomic Growth and ProductivityFirm Innovation and GrowthMicroeconomicsEconometricsIndustrial organizationStatisticsGeometryChromatographyQuantum mechanicsMathematics educationArtificial intelligenceOperating system