Innovation in large and small firms: an empirical analysis
Publication Year: 1988
Journal: American Economic Review
The authors present a model suggesting that innovative output is influenced by R&D and market struc ture characteristics. Using a new and direct measure of innovation in a cross-section regression model estimating the total number of inno vations and large- and small-firm innovations, they find that: (1) th e total number of innovations is negatively related to concentration and unionization, and positively related to R&D, skilled labor, and t he degree to which large firms comprise the industry; and (2) these d eterminants have disparate effects on large and small firms. Copyright 1988 by American Economic Association.