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Driving Forces for Research and Development Strategies: An Empirical Analysis Based on Firm-level Panel Data

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Abstract

This paper investigates empirically different ways to organize R&D within Swiss firms. Based on a longitudinal data set comprising three cross-sections (1999, 2002, and 2005) of the Swiss innovation survey, four different types of R&D strategies were identified: firms combine in-house R&D with R&D co-operations (coop), or in-house R&D with external R&D (buy), or they conduct in-house R&D, external R&D and R&D co-operations (mixed), or they exclusively rely on in-house R&D (make). It is the aim of this paper to understand what drives firms to apply different strategies. Based on econometric estimations controlling for correlations between the dependent variables and endogeneity among the independent variables it was found that concepts related to the absorptive capacity, incoming spillovers and appropriability, the importance of different knowledge resources, the competitive environment, costs and skill aspects as well as technological uncertainty are essential factors that determine a firm's decision to choose a specific way to organize R&D.

Suggested Citation

  • Martin Woerter, 2007. "Driving Forces for Research and Development Strategies: An Empirical Analysis Based on Firm-level Panel Data," KOF Working papers 07-184, KOF Swiss Economic Institute, ETH Zurich.
    • Handle: RePEc:kof:wpskof:07-184
    DOI: 10.3929/ethz-a-005510829
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    Cited by:

    1. Spyros Arvanitis, 2009. "How do different motives for R&D cooperation affect firm performance?," KOF Working papers 09-233, KOF Swiss Economic Institute, ETH Zurich.
    2. Gkypali, Areti & Arvanitis, Spyros & Tsekouras, Kostas, 2018. "Absorptive capacity, exporting activities, innovation openness and innovation performance: A SEM approach towards a unifying framework," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 143-155.
    3. Thomas Bolli & Martin Woerter, 2013. "Competition and R&D cooperation with universities and competitors," The Journal of Technology Transfer, Springer, vol. 38(6), pages 768-787, December.
    4. Martin Woerter, 2009. "Industry diversity and its impact on the innovation performance of firms," Journal of Evolutionary Economics, Springer, vol. 19(5), pages 675-700, October.
    5. Spyros Arvanitis, 2012. "How do different motives for R&D cooperation affect firm performance? – An analysis based on Swiss micro data," Journal of Evolutionary Economics, Springer, vol. 22(5), pages 981-1007, November.
    6. Spyros Arvanitis & Thomas Bolli, 2009. "A comparison of firm-level innovation cooperation in five European countries," KOF Working papers 09-232, KOF Swiss Economic Institute, ETH Zurich.
    7. Spyros Arvanitis & Thomas Bolli, 2013. "A Comparison of National and International Innovation Cooperation in Five European Countries," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 43(3), pages 163-191, November.

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    More about this item

    Keywords

    Research and Development; R&D Co-operations; Empirical Analysis(Firm Panel); R&D Strategies;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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    1. Socio-Economics of Innovation

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