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http://dx.doi.org/10.11627/jkise.2014.37.3.24

Antecedents and Effects of R&D Concentration : An Analysis from the Perspective of the Structure-Conduct-Performance paradigm  

Cho, Young-Gon (College of Business Administration, Sangmyung University)
Shin, Hyuk-Seung (Division of Economics, Sookmyung Women's University)
Sul, Won-Sik (Division of Business Administration, Sookmyung Women's University)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.37, no.3, 2014 , pp. 24-35 More about this Journal
Abstract
This paper examines, from the perspective of the structure-conduct-performance (S-C-P) paradigm, the structural factors that determine R&D concentration in industries. The results are as follows. First, an industry's R&D concentration is directly related to its market concentration, R&D intensity, capital intensity, and technological opportunities. In contrast, the higher an industry's performance, the more likely the diffusion of R&D investment is for firms belonging to that industry. Second, an industry's R&D concentration has a positive effect on its market concentration but a negative effect on its performance, suggesting that governments should adopt R&D policies that would induce more firms to invest in R&D instead of focusing only on a few firms to enhance industry performance.
Keywords
Industry Performance; Market Structure; R&D Concentration; R&D Intensity; S-C-P(Structure-Conduct-Performance) Paradigm;
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