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DETERMINANTS OF RESEARCH AND DEVELOPMENT INTENSITY FROM A NETWORK PERSPECTIVE

TENG Joe K.L., Jiayu Hu, Dazhong Wu, MIXON Phillip A. and DUAN Chaojie (cj
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TENG Joe K.L.: Sorrell College of Business, Troy University
Jiayu Hu: Sorrell College of Business, Troy University
Dazhong Wu: Sorrell College of Business, Troy University
MIXON Phillip A.: Sorrell College of Business, Troy University
DUAN Chaojie (cj: Sorrell College of Business, Troy University

Studies in Business and Economics, 2016, vol. 11, issue 3, 129-139

Abstract: We model and examine the research and development (R&D) intensity of a focal industry from an inter-industry network perspective. More specifically, we estimate how a focal industry’s R&D investment is affected by partner (suppliers and customers) industries’ R&D expenditure. We also investigate the impact of the overall economy on the focal industry’s R&D expenditure and finally how a focal industry’s position in the supply chain network moderates the overall economy’s impact on the focal industry’s R&D expenditure. We found that, in general, a focal industry’s R&D intensity is positively associated with its partner industries’ R&D intensity. In addition, an industry’s R&D intensity is positively associated with the growth rate of the overall economy. Finally, we found that a more central industry is subjected to a stronger impact of macroeconomic shocks on its R&D intensity though there is no significant association between an industry’s centrality and its R&D intensity.

Keywords: R&D; R&D intensity; network model; centrality (search for similar items in EconPapers)
Date: 2016
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