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Propensity to Patent and Firm Size for Small R&D-Intensive Firms

Albert Link and John Scott ()
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John Scott: Dartmouth College, Department of Economics

Authors registered in the RePEc Author Service: John R. Scott () and John Troy Scott

No 18-1, UNCG Economics Working Papers from University of North Carolina at Greensboro, Department of Economics

Abstract: The Schumpeterian hypothesis about the effect of firm size on research and development (R&D) output is studied for a sample of R&D projects for R&D-intensive firms that are small but have substantial variance in their sizes. Across the distribution of firm sizes, the elasticity of patenting with respect to R&D ranged from 0.41 to 0.55, with the elasticities being largest for intermediate levels of firm size and also varying directly with the extent to which the projects are Schumpeterian in the cost or value senses. The paper’s findings at the R&D project level are compared with the literature’s findings at the line of business, firm, and industry levels, and the findings are consistent with the literature’s findings for small firms.

Keywords: Patents; Research and Development (R&D); Firm Size; Schumpeterian hypothesis; Technological Progress; Innovation (search for similar items in EconPapers)
JEL-codes: L10 L20 L25 O30 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2018-01-24
New Economics Papers: this item is included in nep-ent, nep-ino, nep-ipr, nep-ppm, nep-sbm and nep-tid
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Citations: View citations in EconPapers (11) Track citations by RSS feed

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