Corporate R&D Intensity Decomposition: Different Data, Different Results?

Pietro Moncada-Paternò-Castello, Sara Amoroso, Michele Cincera (2020). Corporate R&D intensity decomposition: different data, different results? Science and Public Policy, https://doi.org/10.1093/scipol/scaa026

28 Pages Posted: 19 Oct 2020

See all articles by Pietro Moncada-Paternò-Castello

Pietro Moncada-Paternò-Castello

European Union - Institute for Prospective Technological Studies (IPTS)

Sara Amoroso

European Commission, Joint Research Centre, Institute for Prospective Technological Studies (IPTS)

Michele Cincera

Université libre de Bruxelles, Solvay Brussels School of Economics and Management, iCite

Date Written: February 12, 2020

Abstract

Research and Development (R&D) indicators are used to facilitate international comparisons and as targets for research and innovation policy. An example of such an indicator is R&D intensity. The decomposition of the aggregate corporate R&D intensity is able to explain the differences in R&D intensity between countries by determining whether is the result of firms’ underinvestment in R&D or of the differences across sectors. Despite its importance, the literature of corporate R&D intensity decomposition has been developed only recently. This paper reviews for the first time the different methodological frameworks of corporate R&D intensity decomposition and how they are used in practice, shedding light on why sometimes empirical results seem to be contradictory. It inspects how the use of different data sources and analytical methods affect R&D intensity decomposition results, and what the analytical and policy implications are. The paper also provides methodological and analytical guidance to analysts and policymakers.

Keywords: corporate R&D intensity gap; decomposition; literature survey; R&D policy; methodological hints

JEL Classification: O30; O32, O38; O57; F23; R39

Suggested Citation

Moncada-Paternò-Castello, Pietro and Amoroso, Sara and Cincera, Michele, Corporate R&D Intensity Decomposition: Different Data, Different Results? (February 12, 2020). Pietro Moncada-Paternò-Castello, Sara Amoroso, Michele Cincera (2020). Corporate R&D intensity decomposition: different data, different results? Science and Public Policy, https://doi.org/10.1093/scipol/scaa026, Available at SSRN: https://ssrn.com/abstract=3683943

Pietro Moncada-Paternò-Castello (Contact Author)

European Union - Institute for Prospective Technological Studies (IPTS) ( email )

Sara Amoroso

European Commission, Joint Research Centre, Institute for Prospective Technological Studies (IPTS) ( email )

Edificio Expo, C
Inca Garcilaso, s/n
Sevilla, E-41092
Spain
+34 9544 88335 (Phone)

Michele Cincera

Université libre de Bruxelles, Solvay Brussels School of Economics and Management, iCite ( email )

42 Av Franklin Roosevelt
1050
Brussels
Belgium
+3226504151 (Phone)
+3226504305 (Fax)

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