Internal and External R&D: A Sample Selection Approach

26 Pages Posted: 23 Aug 2004

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

Abstract

This study underlines that the decision to enter into an external R&D relationship is related to an antecedent decision to carry out R&D. This calls for an empirical approach that permits the joint analysis of the determinants of the two decisions, correcting for sample selectivity. Based on a sample of Italian manufacturing firms, the results confirm the need to adopt this approach. Another contribution made by this study is the managerial implications that can be derived from its empirical model, which provide a better understanding of the factors associated with a firm's decision to engage in R&D both independently and with external partners.

Suggested Citation

Piga, Claudio A. and Vivarelli, Marco, Internal and External R&D: A Sample Selection Approach. Oxford Bulletin of Economics and Statistics, Vol. 66, No. 4, pp. 457-482, September 2004. Available at SSRN: https://ssrn.com/abstract=573035

Claudio A. Piga

Keele University - Keele Management School ( email )

Darwin Building
Staffordshire, ST5 5BG
United Kingdom

Marco Vivarelli (Contact Author)

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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