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Maud Roucan-Kane (), David Ubilava () and Pei Xu ()
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Pei Xu: Department of Agricultural Economics, College of Agriculture, Purdue University

No 07-04, Working Papers from Purdue University, College of Agriculture, Department of Agricultural Economics

Abstract: The objective of this paper is to determine how the firm's infrastructure, the financial characteristics of a company (net income, sales), and the organizational structure (number of acquisitions, age of establishment of the firm) affect R&D investments in the agricultural sector. We use data for companies under the SIC codes for agricultural chemicals, and crop planning and protection. The results based on analysis of 69 observations of 12 firms revealed that firm's financial and organizational infrastructure does affect its R&D expenditures. Older and larger firms tend to spend more on R&D. During the last 17 years the R&D expenditures with respect to the sales of the company have been reduced. Finally, contrary to the expectations, previous year's profit margins are negatively correlated with the R&D over the sales ratio of the following year.

Keywords: Manufactured Housing; R&D, agriculture, chemicals, crop planning, crop protection, agribusiness, expenditures (search for similar items in EconPapers)
JEL-codes: A10 O32 Q16 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2007
New Economics Papers: this item is included in nep-agr, nep-ipr, nep-pr~, nep-mic and nep-tid
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