This article examines the role of firm size and industry structure on the Research and Development (R&D) intensity of a firm. Taking the 2004 data for a cross-section of Indian firms, we analyse these two areas using the Tobit framework. Using the input-based measurement of R&D initiative, we found that there is an increasing relationship between the size of a firm and the probability of it engaging in R&D activity. The market share and human capital (proxied by wages) also increases the probability of R&D activity. However we failed to find any significant impact of market concentration and export orientation on a firm's R&D intensity.
|Number of pages||12|
|Publication status||Published - 1 Sep 2007|
- Firm size
- Market concentration
- R&D intensit