The R&D Investment-Uncertainty Relationship: Do Competition and Firm Size Matter?


Czarnitzki, Dirk ; Toole, Andrew A.


[img]
Preview
PDF
dp08013.pdf - Published

Download (245kB)

URL: http://ub-madoc.bib.uni-mannheim.de/1916
URN: urn:nbn:de:bsz:180-madoc-19164
Document Type: Working paper
Year of publication: 2008
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: G31 L11 O31 ,
Subject headings (SWD): Industrieforschung , Investitionsrisiko , Betriebsgröße , Marktstruktur , Wettbewerb , Deutschland
Keywords (English): Real Options Theory , Uncertainty , R&D , Competition , Firm Size
Abstract: This paper investigates how competition and firm size affect the relationship between market uncertainty and R&D investment. We use an intuitively appealing measure of firm-specific uncertainty along with panel data to show that firms invest less in current R&D as uncertainty about market returns increases. The effect of firm-specific uncertainty on R&D investment is smaller in concentrated markets – those where market power is higher and strategic rivalry is more intense. Further, the effect of uncertainty on R&D investment is attenuated for large firms which may be the result greater economies of scope.
Additional information:

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




+ Citation Example and Export

Czarnitzki, Dirk ; Toole, Andrew A. (2008) The R&D Investment-Uncertainty Relationship: Do Competition and Firm Size Matter? Open Access [Working paper]
[img]
Preview


+ Search Authors in

+ Download Statistics

Downloads per month over past year

View more statistics



You have found an error? Please let us know about your desired correction here: E-Mail


Actions (login required)

Show item Show item