Innovation in Large and Small Firms: An Empirical Analysis

Zoltan Acs and David Audretsch ()

American Economic Review, 1988, vol. 78, issue 4, 678-90

Abstract: The authors present a model suggesting that innovative output is influenced by R&D and market struc ture characteristics. Using a new and direct measure of innovation in a cross-section regression model estimating the total number of inno vations and large- and small-firm innovations, they find that: (1) th e total number of innovations is negatively related to concentration and unionization, and positively related to R&D, skilled labor, and t he degree to which large firms comprise the industry; and (2) these d eterminants have disparate effects on large and small firms. Copyright 1988 by American Economic Association.

Date: 1988
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