This paper models the decision of a firm to engage in innovative activity and to protect the results of that activity. Using a unique firm-level dataset collected for this purpose, estimation indicates that the interactions between current R&D and past licensing are prime contributors to...

This article analyzes cost-reducing R&D investments by firms that behave non-cooperatively or cooperatively. Firms face a trade-off between allocating their R&D investments to innovate or to imitate (absorb). We find that the non-cooperative behavior not only induces more imitation (absorption)...

Innovative activity is performed to a considerable extent in the service sector, namely within the so-called knowledge intensive business services (KIBS). Particularly emphasizing the role of absorptive capacity, we analyze possible determinants of incremental and radical firm innovation using...

Absorptive capacity plays a key role in determining firms' capability to access and make use of external knowledge. However, little evidence has been provided about this important determinant of knowledge acquisition in the context of small and medium-sized enterprises (SMEs). This article...

Based on data for a panel of several thousand Indian firms covering a period of 15 years, between 1991-1992 and 2005-2006, this article has examined the impact of financial retentions and debt types on the levels of R&D undertaken by firms. Retentions by firms clearly influence firms' R&D...

This paper presents the first exploration of survey data of innovation strategy and performance of over 10,000 Japanese manufacturers. Although the importance of technological activities among various kinds of firms' strategic variables is generally agreed in Japan, empirical studies of them are...

The aim of this paper is to investigate the relationship between R&D expenditure and investment in machinery and equipment in order to test for causality. New growth theory emphasises the role of R&D in creating blueprints needed to produce new capital goods implicitly assuming causality running...

This paper investigates the impact of R&D disclosure and finance variables on the level of R&D expenditures. The question addressed is: what is the impact of changes in disclosure requirements on the relationship between R&D expenditure and the financing of firms? The question is motivated by...

This article analyses the determinants of research and development (R&D) and the role of innovation on labour productivity in Catalan firms. Our empirical analysis found a considerable heterogeneity in firm performances between the manufacturing and service industries and between low- and...

This manuscript reports on the proceedings of an R&D Roundtable that took place at the National Bureau of Economic Research in the summer of 1999. Zvi Griliches envisioned the Roundtable as a chance to discuss the agenda for economic research on R&D over the next 20 years. Daron Acemoglu,...