Privatization Processes and the Redefinition of Corporate R&D Boundaries

23 Pages Posted: 17 May 2005

See all articles by Federico Munari

Federico Munari

University of Bologna - Department of Management

Edward B. Roberts

Founder/Chair, Martin Trust Center for MIT Entrepreneurship

Maurizio Sobrero

University of Bologna - Department of Management

Abstract

Although the economic and welfare consequences of privatization processes have been widely studied, less attention has been paid to understanding how these processes affect corporate research and development (R&D), and hence the innovative performance of the firm. We propose to address these issues by combining a policy level perspective with a firm level perspective centered around the role of corporate R&D and its changes. We use data from a few recent privatization processes to show how and by what processes R&D activities are affected in terms of amount and origins of funds allocated, scope of projects funded, and reliance on outside collaborations. In the light of these cases, we present a framework to characterize firm level effects of government divestment to guide managerial choices in restructuring corporate R&D and governmental action to proactively counterbalance post-privatization underinvestment risks.

Keywords: Privatization, Market deregulation, R&D investments, R&D scope, External collaborations

JEL Classification: L33, O32, O38

Suggested Citation

Munari, Federico and Roberts, Edward B. and Sobrero, Maurizio, Privatization Processes and the Redefinition of Corporate R&D Boundaries. Research Policy, Vol. 31, No. 1, pp. 31-53, January 2002. Available at SSRN: https://ssrn.com/abstract=722425

Federico Munari

University of Bologna - Department of Management ( email )

Piazza Scaravilli 1
Bologna, Bologna 40126
ITALY
051-2093954 (Phone)
051-2093949 (Fax)

Edward B. Roberts

Founder/Chair, Martin Trust Center for MIT Entrepreneurship ( email )

100 Main Street, E62-440
Cambridge, MA 02142
United States
617-253-4934 (Phone)
617-253-2660 (Fax)

Maurizio Sobrero (Contact Author)

University of Bologna - Department of Management ( email )

Via Capo di Lucca 34
40126 Bologna, Bologna 40126
Italy
+39 051 2098076 (Phone)

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