31 Pages Posted: 26 Apr 2007
Date Written: April 24, 2007
This paper examines the relationships between market structure and the optimal timing of R&D investment by using firm-level data of the U.S. manufacturing industry. In addition, this paper analyzes the effects of firm resources, such as firm size, liquidity constraint, and R&D expenditure on the optimal timing of investment. The empirical results show that when the market is more competitive, it is optimal to delay the property investment of uncertain projects and to accelerate introduction of product into the market. However, a firm's debt to equity ratio is not significantly related to the firm's investment timing decision.
Keywords: strategic acceleration, strategic delay, R&D, competition
JEL Classification: O32
Suggested Citation: Suggested Citation
Oh, Chang Hoon, Strategic Acceleration and Delay: Evidence on Optimal Timing of R&D Investment (April 24, 2007). Available at SSRN: https://ssrn.com/abstract=982764 or http://dx.doi.org/10.2139/ssrn.982764
By Bronwyn Hall