Firm Size and R&D Intensity: A Re-Examination
Wesley M. Cohen, Richard C. Levin, David C. Mowery
NBER Working Paper No. 2205
Using data from the Federal Trade Commission's Line of Business Program and survey measures of technological opportunity and appropriability conditions, this paper finds that overall firm size has a very small, statistically in- significant effect on business unit R & D intensity when either fixed industry effects or measured industry characteristics are taken into account. Business unit size has no effect on the R & D intensity of business units that perform R & D, but it affects the probability of conducting R & D. Business unit and firm size jointly explain less than one per cent of the variance in R & D intensity; industry effects explain nearly half the variance.
Published: Cohen, Wesley M., Richard C. Levin and David C. Mowery. "Firm Size and R&D Intensity: A Re-Examination," Journal of Industrial Economics, Vol. XXXV, No. 4, June 1987, pp. 543-565.