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The Costs of Industrial Product Innovations

Edwin Mansfield and John Rapoport
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Edwin Mansfield: Professor of Economics at the Wharton School, University of Pennsylvania
John Rapoport: Associate Professor of Economics at Mount Holyoke College

Management Science, 1975, vol. 21, issue 12, 1380-1386

Abstract: To help shed new light on the factors associated with the large differences among innovations in the percent of innovation costs devoted to R and D, detailed data were obtained concerning a sample of chemical innovations. A simple econometric model was used to test a number of tentative hypotheses advanced to help explain these differences. The model can explain about half of the observed variation.

Date: 1975
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