Abstract
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.
| Original language | English |
|---|---|
| Pages (from-to) | 237-248 |
| Number of pages | 12 |
| Journal | Economic Papers |
| Volume | 26 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 1 Sept 2007 |
Keywords
- Firm size
- India
- Market concentration
- R&D intensit
- Tobit