Analysis for R&D Organization Choice in Innovative Firms

Abstract

We are interested in the behaviors of innovative manufacturing firms in choosing and implementing the organizational forms such as cooperative R&D. In this study, we examine the behavior of innovative firms regarding employment, R&D spending, or in-house or outsourcing(cooperation) by limited dependent variable model. We find the determinants of innovating firms for choosing the alternative methods of R&D: cooperative R&D, female employment, and specific department for R&D, etc. In special, R&D organization and firm size affect the magnitude of female employment. For the probability of product innovation, female employment is significant in the range of R&D spending more than $120 mil. We also examined the determinants of cooperative R&D. From the results, we can find that special R&D team(department) affects employment pattern significantly. We also considered sample selection issue. This study may help government in which public experts seeks to enhance the productivity level of firms.