GP - Research & Development Behavior Flashcards

1
Q

why do companies invest in R&D and how?

A

they want to improve their efficiency and provide customized products
through increasing globalization and the infrastructure in communication and transport

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what are the factors determining R&D activities?

6

A
  • Size of the Firm, positive correlation due to greater resources and reduced investment risk
  • Age of the Firm, positive correlation
  • Capital Intensity, positive correlation
  • Labor Intensity (more skilled labor, higher tendency to invest)
  • Selling and Distribution, negative correlation
  • Import of Technology positive correlation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Flying Geese model in 1 sentence

A

model describes how developed countries lead industrial innovation which is then adopted by developing countries as industries shift globally

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

how does outsourcing affect R&D?

A

firms that outsource manufactoring tasks tend to invest more in r&D, possibly to maintain competetive advantages in innovation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

which industries show the highest R&D activity in foreign-owned firms in India?

A

pharmaceutical and textiles with foreign manufactoring firms having higher R&D intensity than foreign services firms

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what is the Heckman 2-step model used for in r&D studies?

A

used to analyze the differnce between the decision to invest in r&D and the intensity of that investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly