IDEAS home Printed from https://ideas.repec.org/a/ucp/jnlbus/v61y1988i3p321-36.html
   My bibliography  Save this article

The Effects of Regulation on Research and Development: Theory and Evidence

Author

Listed:
  • Mayo, John W
  • Flynn, Joseph E

Abstract

While other aspects of the effects of regulation on resource allocation have received considerable attention, the impact of regulation on the innovative p ropensities of regulated firms has generated only limited and somewha t tenuous evidence. Accordingly, this article investigates the effect s of regulation and firm structure on research and development (R&D) expenditures. A simple model of the behavior of a firm under a rate-o f-return regulation suggests that both the stringency of the allowed rate-of-return constraint and the inclusion or exclusion of R&D in a firm's rate base will be key determinants of firm level R&D expenditu res. The empirical results strongly support the theoretical model. Copyright 1988 by the University of Chicago.

Suggested Citation

  • Mayo, John W & Flynn, Joseph E, 1988. "The Effects of Regulation on Research and Development: Theory and Evidence," The Journal of Business, University of Chicago Press, vol. 61(3), pages 321-336, July.
    • Handle: RePEc:ucp:jnlbus:v:61:y:1988:i:3:p:321-36
    DOI: 10.1086/296435
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/296435
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    File URL: https://libkey.io/10.1086/296435?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. T. Jamasb & R. Nepal, 2015. "Issues and Options in the Economic Regulation of European Network Security," Competition and Regulation in Network Industries, Intersentia, vol. 16(1), pages 2-23, March.
    2. Archana Hingorani & Karen Shastri & Kuldeep Shastri, 1994. "Product Regulation and Stock Prices: The Case of the US Food and Drug Administration," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 1(2), pages 163-178.
    3. Jamasb, T. & Pollitt, M., 2005. "Deregulation and R&D in Network Industries: The Case of the Electricity Industry," Cambridge Working Papers in Economics 0533, Faculty of Economics, University of Cambridge.
    4. Schmitt, Stephan & Kucsera, Denes, 2013. "The Impact of the Regulatory Reform Process on R&D Investment of European Electricity Utilities," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 80035, Verein für Socialpolitik / German Economic Association.
    5. Graeme Guthrie, 2006. "Regulating Infrastructure: The Impact on Risk and Investment," Journal of Economic Literature, American Economic Association, vol. 44(4), pages 925-972, December.
    6. Müller, Christine & Growitsch, Christian & Wissner, Matthias, 2010. "Regulierung und Investitionsanreize in der ökonomischen Theorie. IRIN Working Paper im Rahmen des Arbeitspakets: Smart Grid-gerechte Weiterentwicklung der Anreizregulierung," WIK Discussion Papers 349, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.
    7. Jamasb, Tooraj & Pollitt, Michael, 2008. "Liberalisation and R&D in network industries: The case of the electricity industry," Research Policy, Elsevier, vol. 37(6-7), pages 995-1008, July.
    8. Yoonhwan Oh & Jungsub Yoon & Jeong-Dong Lee, 2016. "Evolutionary Patterns of Renewable Energy Technology Development in East Asia (1990–2010)," Sustainability, MDPI, vol. 8(8), pages 1-24, July.
    9. Meeus, Leonardo & Saguan, Marcelo, 2011. "Innovating grid regulation to regulate grid innovation: From the Orkney Isles to Kriegers Flak via Italy," Renewable Energy, Elsevier, vol. 36(6), pages 1761-1765.
    10. Dierk Bauknecht, 2011. "Incentive Regulation and Network Innovations," RSCAS Working Papers 2011/02, European University Institute.
    11. Lyon, Thomas P. & Huang, Haizhou, 1997. "Innovation and imitation in an asymmetrically-regulated industry," International Journal of Industrial Organization, Elsevier, vol. 15(1), pages 29-50, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jnlbus:v:61:y:1988:i:3:p:321-36. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.jstor.org/journal/jbusiness .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.