Cooperation in R&D and Sample Selection

29 Pages Posted: 29 Jul 2002

See all articles by Claudio A. Piga

Claudio A. Piga

Keele University - Keele Management School

Marco Vivarelli

Universita Cattolica del Sacro Cuore, Milano; IZA Institute of Labor Economics

Date Written: July 2002

Abstract

This study explicitly takes into account that the decision to enter into a cooperative R&D relationship is related to the antecedent decision to carry out R&D. This calls for a methodological approach that, at the same time, allows the joint analysis of the determinants of the two decisions and corrects for the sample selectivity that is intrinsic in the analysis of cooperative R&D. The results indicate the need to explicitly consider the selectivity issue in the empirical analysis of cooperative R&D. Moreover, the empirical evidence suggests that the role of the organizational form, the pursuit of multiple innovative objectives, the incentives to conduct R&D for those firms that are involved in close-knit vertical relationships are important drivers of a firm's decision to engage in R&D both independently and with external partners.

Keywords: Cooperative R&D, Bivariate Probit, Selectivity, Outsourcing, Business Groups

JEL Classification: L1, O3

Suggested Citation

Piga, Claudio A. and Vivarelli, Marco, Cooperation in R&D and Sample Selection (July 2002). FEEM Working Paper No. 49.2002. Available at SSRN: https://ssrn.com/abstract=317962 or http://dx.doi.org/10.2139/ssrn.317962

Claudio A. Piga (Contact Author)

Keele University - Keele Management School ( email )

Darwin Building
Staffordshire, ST5 5BG
United Kingdom

Marco Vivarelli

Universita Cattolica del Sacro Cuore, Milano ( email )

Largo Gemelli 1
Milano, 20123
Italy

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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