Determinants of R&D in knowledge-intensive business services firms

David Doloreux, Richard Shearmur and Mercedes Rodriguez

Economics of Innovation and New Technology, 2016, vol. 25, issue 4, 391-405

Abstract: Research and development (R&D) is a key factor enabling firms to gather information, create knowledge and innovate. Although often seen as the preserve of goods-producing sectors, knowledge-intensive business services (KIBS) in particular also engage in R&D. In this paper, we are interested in understanding the determinants of R&D in KIBS. We address this question by exploring factors connected to R&D in KIBS, with attention to whether it is connected with internal capabilities or to establishments' openness. We show that KIBS' R&D is associated with internal capabilities, and that recourse to external R&D is part of a strategy of openness that complements internal capacity. We also suggest that KIBS's own view of R&D is aligned with R&D in the goods-producing sector, leading establishments in non-technological KIBS sectors to under-report R&D.

Date: 2016
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Citations: View citations in EconPapers (7)

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DOI: 10.1080/10438599.2015.1067001

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