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Abstract

Vol. 53, No. 1, pp. 18-23 (2002)

“Determinants of Industrial R&D in Japanese Manufacturing Industries”
Akira Goto (Research Center for Advanced Economic Engineering, The University of Tokyo), Tadahisa Koga (National Institute of Science and Technology Policy), Kazuyuki Suzuki (School of Commerce, Meiji University)

Two sets of variables, namely industry variables such as appropriablity, technological opportunity, and firm specific variables such as sales, cash flow are both employed to explain R&D investments by firms. The appropriability and technological opportunity variables are constructed from a newly assembled database. The regression results show that appropriability and technological opportunity are important determinants of R&D investments. Cash flow constrains R&D investment of both large firms and medium firms.