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The determinants of R&D persistence in SMEs

Juan A. Mañez, María E. Rochina-Barrachina, Amparo Sanchis-Llopis () and Juan A. Sanchis-Llopis
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María E. Rochina-Barrachina: Universitat de València and ERI-CES, Departamento de Economía Aplicada II, Avda. dels Tarongers s/n, 46022 Valencia, Spain
Juan A. Sanchis-Llopis: Universitat de València and ERI-CES, Departamento de Economía Aplicada II, Avda. dels Tarongers s/n, 46022 Valencia, Spain

Authors registered in the RePEc Author Service: Maria Engracia Rochina Barrachina and Juan A. Sanchis Llopis ()

No 1410, Working Papers from Department of Applied Economics II, Universidad de Valencia

Abstract: This paper analyses the sources of persistence in conducting R&D activities by SMEs. The data used is a panel of Spanish manufacturing firms drawn from the Survey of Business Strategies (ESEE), for the period 1990-2011. We estimate discrete time proportional hazard models accounting for firm observed and unobserved heterogeneity. Our results are consistent with a process of learning associated with the accumulation of R&D capital and with a self-sustained effect of engagement in R&D activities. In addition, we obtain that persistence in R&D in SMEs is also related to the success-breeds-success, sunk costs and demand-pull hypotheses. Finally, our findings also uncover some interesting differences in the underlying drivers of R&D persistence of SMEs as compared to their larger counterparts.

Keywords: SMEs; R&D activities; persistence; learning; success-breeds-success; sunk costs; demand-pull; discrete time survival models (search for similar items in EconPapers)
JEL-codes: C41 L60 O31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-ent, nep-eur, nep-ino, nep-sbm and nep-tid
Date: 2014-10
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Related works:
Journal Article: The determinants of R&D persistence in SMEs (2015) Downloads
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