The determinants of R&D persistence in SMEs
Juan A. Mañez,
María E. Rochina-Barrachina,
Amparo Sanchis-Llopis () and
Juan A. Sanchis-Llopis
Additional contact information
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
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
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Journal Article: The determinants of R&D persistence in SMEs (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eec:wpaper:1410
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