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

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
The title of a journal, publication series:	None
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.

BASE: Czarnitzki, Dirk ; Toole, Andrew A.

Google Scholar: Czarnitzki, Dirk ; Toole, Andrew A.

Downloads per month over past year

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

Show item