학회소식
[2016년 제 4차] Well Begun Is Half Done: Initial R&D Competence and
작성자 : 관리자
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2016-12-21
We examine the effects of initial competence on innovation strategies and growth. Using a detailed project-level data for private firms in the drug sector, we show that R&D competence is persistent, suggesting the large part of the cross-sectional variation in R&D performance is initially determined. We find that firms with high initial competence are more likely to be exploitative in their best segment and grow faster and more successfully. By contrast, firms with low initial competence tend to be explorative, diversifying into multiple segments. Medicare Part D legislation as an exogenous shock to diversification incentives suggests a likely causal relationship.
