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Why Do Some Firms Undertake R&D Whereas Others Do Not?

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  • Richard Harris
  • Mary Trainor

Abstract

Data for the UK show Northern Ireland remains at the bottom of the productivity leaguetable, and that its R&D performance is consistently amongst the lowest across the UKregions. This paper analyses the data from a survey of some 250 matched firms operating inNorthern Ireland (approximately half undertaking R&D and half not), in order to provide amore detailed analysis of attitudes to undertaking R&D in the Province. We consider a rangeof factors that determine whether R&D takes place (such as absorptive capacity, marketorientation, business objectives, and competitive advantages). Conditional on whether R&Doccurs, the analysis then looks at, firstly, the determinants of the R&D capital stock andintensity; before concentrating on those firms who undertook no R&D and analysing whichfactors might make them likely to engage in such activities in the future. Policy conclusionsare then drawn as to what might be done to boost both the amount of R&D undertaken andthe number of firms engaged in R&D in the Province.

Suggested Citation

  • Richard Harris & Mary Trainor, 2009. "Why Do Some Firms Undertake R&D Whereas Others Do Not?," SERC Discussion Papers 0020, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:sercdp:0020
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    References listed on IDEAS

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    More about this item

    Keywords

    R&D; regional policy; matching;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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