Template-type: ReDIF-Paper 1.0
Author-Name: Rosa, Julio Miguel 
Author-Email: JulioMiguel.Rosa@ic.gc.ca
Author-Workplace-Name: Industry Canada, Economic Research and Policy Analysis Branch
Author-Name: Mohnen, Pierre
Author-Email: mohnen@merit.unu.edu
Author-Workplace-Name: UNU-MERIT / MGSoG, and CIRANO
Title: Doing R&D in a closed or open mode: Dynamics and impacts on productivity
Abstract: On the one hand, firms prefer to perform R&D in an open mode (letting 
	 R&D be performed extramurally or even selling their R&D services) to 
	 benefit from knowledge spillovers and complementarities between internal 
	 and external R&D. On the other hand, they may also like to perform R&D 
	 in a closed mode (funding and executing their R&D intramurally) to 
	 minimize outgoing externalities. We examine the dynamic process by which 
	 firms change the way of doing R&D and how these strategic choices of 
	 doing R&D affect their productivity growth. This study is based on the 
	 Statistics Canada Research and Development in Canadian Industry survey 
	 (RDCI), which collects data on R&D performed in the business sector in 
	 Canada. The paper is based on data for the period 1997 to 2006. The 
	 panel dimension of the data allows to control for unobserved 
	 characteristics of R&D performers by estimating a multinomial Logit 
	 model with unobserved heterogeneities using maximum simulated likelihood 
	 (MSL) method.
Classification-JEL: C35, L23, 032, 033
Keywords: R&D, State Dependence, Dynamic Multinomial Logit, Panel-data, Maximum
	 Simulated Likelihood, Open Innovation
Series: UNU-MERIT Working Papers
Creation-Date: 2013
Number: 060
File-URL: http://www.merit.unu.edu/publications/wppdf/2013/wp2013-060.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2013060