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Doing R&D in a closed or open mode : dynamics and impacts on productivity

Author

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  • Rosa J.
  • Mohnen P.

    (UNU-MERIT)

Abstract

On the one hand, firms prefer to perform RD in an open mode letting RD be performed extramurally or even selling their RD services to benefit from knowledge spillovers and complementarities between internal and external RD. On the other hand, they may also like to perform RD in a closed mode funding and executing their RD intramurally to minimize outgoing externalities. We examine the dynamic process by which firms change the way of doing RD and how these strategic choices of doing RD affect their productivity growth. This study is based on the Statistics Canada Research and Development in Canadian Industry survey RDCI, which collects data on RD performed in the business sector in Canada. The paper is based on data for the period 1997 to 2006. The panel dimension of the data allows to control for unobserved characteristics ofRD performers by estimating a multinomial Logit model with unobserved heterogeneities using maximum simulated likelihood MSL method.

Suggested Citation

  • Rosa J. & Mohnen P., 2013. "Doing R&D in a closed or open mode : dynamics and impacts on productivity," MERIT Working Papers 2013-060, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2013060
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    Cited by:

    1. Santosh K. Sahu & K. Narayanan, 2015. "Technology Import, R and D Spillover and Export: A Study of Automobile Sector in India," Working Papers 2015-098, Madras School of Economics,Chennai,India.
    2. Neo Molotja & Saahier Parker & Precious Mudavanhu, 2019. "Patterns of Investing into Business R&D in South Africa," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 13(3), pages 51-60.

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    More about this item

    Keywords

    Discrete Regressors; Organization of Production; Management of Technological Innovation and R&D; Technological Change; Choices and Consequences; Diffusion Processes;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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