The size, concentration and evolution of corporate R&D spending in U.S. firms from 1976 to 2010: Evidence and implications

► Analysis of size, concentration and distribution of R&D expenditures of US firms. ► Assess suitability of R&D spending as an empirical proxy. ► R&D is more skewed than the distribution of advertising and Capex. ► No systematic bias towards managerial myopia with respect to R&D. ► Large share of current profits allocated to risky long-term R&D investment.