Relation Of Firm Size To R&D Productivity

Topics:
Organization
Tags:
Business Operations,
Firm,
R&D,
Research & Development
Source:
University at Buffalo

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Overview: Many studies have shown that small firms generate more patents per R&D dollar than large firms. Does this mean that small firms are more efficient innovators than large firms? This paper exploits a unique data set to reexamine the firm size-innovation relationship. Because firm-reported R&D expenditures may be a biased measure of R&D activities due to underreporting by small firms, the number of inventors is used in the firm's employ as a measure of R&D inputs. This paper focuses on the pharmaceutical and semiconductor industries, two industries that are prolific generators of homogenous innovations. As has been found elsewhere in the literature, it was found that patents per R&D dollar decline with firm size for both industries.

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Format: PDF | Size: 139KB | Date: Jun 2004 | Pages: 17

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