Firm Size and Efficient Entrepreneurial Activity: A Reformulation of the Schumpeter Hypothesis.

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Albert N. Link, Professor (Creator)
Institution
The University of North Carolina at Greensboro (UNCG )
Web Site: http://library.uncg.edu/

Abstract: This paper examines empirically the relationship between innovative activity, as measured by the rate of return to research-anddevelopment expenditures, and firm size using a sample of firms from tbe chemicals and allied products industry (SIC 28). We find that size is a prerequisite for successful innovative activity. Tbe estimated rate of return to research and development for the smaller firms is 30 percent, while for the larger size firms it is 78 percent. Statistical tests for structural stability were used to divide the sample into these two behavioral regimes.

Additional Information

Publication
Language: English
Date: 1980
Keywords
research and development, research expenditure, product research, chemical industry, firm size, business innovation, research innovation, research investment

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