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Firm Size and R&D Intensity: A Re-examination

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  • Cohen, Wesley M
  • Levin, Richard C
  • Mowery, David C

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 1 percent of the variance in R&D intensity; industry effects explain nearly half the variance. Copyright 1987 by Blackwell Publishing Ltd.

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  • Cohen, Wesley M & Levin, Richard C & Mowery, David C, 1987. "Firm Size and R&D Intensity: A Re-examination," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 543-565, June.
    • Handle: RePEc:bla:jindec:v:35:y:1987:i:4:p:543-65
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