Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
984601 | Research Policy | 2010 | 12 Pages |
Abstract
Using longitudinal data of Spanish manufacturing companies, we study the dynamic, bidirectional relationship between firm research and development (R&D) intensity and corporate diversification in an organic growth setting. Our empirical approach accounts for the different sources of endogeneity. Although we find a positive linear effect of R&D intensity on related diversification, the effect of related diversification on R&D intensity assumes the form of an inverted U. Thus, the effect of related diversification on R&D intensity is positive, but marginally decreases for moderate levels of related diversification. Such an effect can become negative, however, for high levels of related diversification. Additionally, as a consequence of dynamics, the effects after one year are substantially lower than the overall effects that occur over several years.
Related Topics
Social Sciences and Humanities
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Business and International Management
Authors
César Alonso-Borrego, Francisco Javier Forcadell,