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Concentration and Diversification of R&D in a Conglomerate World

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  • Hughes, Kirsty

Abstract

This paper shows that U.K. industry is highly concentrated in its R&D expenditure. At the same time, firms are fairly diversified in their R&D--and this diversification can be observed across broad industry categories. The paper considers the argument that this diversification may be explained in terms of technological relatedness of different industry groups. There is some evidence that technological relatedness is stronger in more R&D intensive industries. The paper presents two measures of technological distance. These measures highlight the potential for spillover from R&D in different product groups within the firm, and the high level of interconnections between industries in terms of R&D. Copyright 1988 by Blackwell Publishing Ltd

Suggested Citation

  • Hughes, Kirsty, 1988. "Concentration and Diversification of R&D in a Conglomerate World," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 50(3), pages 243-261, August.
    • Handle: RePEc:bla:obuest:v:50:y:1988:i:3:p:243-61
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    Cited by:

    1. Boyan Jovanovic, 1993. "The Diversification of Production," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 24(1 Microec), pages 197-247.
    2. Roucan-Kane, Maud & Ubilava, David & Xu, Pei, 2007. "Effects Of Firm-Specific Factors On R&D Expenditures Of Agribusiness Companies," Working papers 7332, Purdue University, Department of Agricultural Economics.

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