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THE DETERMINANTS OF R&D EXPENDITURE OF FIRMS: EVIDENCE FROM A CROSS‐SECTION OF INDIAN FIRMS
Author(s) -
MISHRA VINOD
Publication year - 2007
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/j.1759-3441.2007.tb00433.x
Subject(s) - tobit model , human capital , section (typography) , intensity (physics) , economics , monetary economics , business , econometrics , market economy , advertising , physics , quantum mechanics
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.