Abstract:
The plan of this paper is as follows: First,
we summarize and point out several problems
we found with Comanor's study. Section III
presents the results from a two-equation model
that decomposes the technical change measure into an R and D component and a marketing
component.
The final section is an analysis of the elasticity
of technical change with respect to firm
size. The total elasticity is shown to consist of
two parts - a "direct" and an "indirect" effect
of size. The indirect effect is the effect on technical
change of the increase in R and- D inputs
(induced by an increase in firm size). In this
section we make use also of a maximum likelihood
estimation technique developed by Tobin
(1958) for cases where the dependent variable
is limited, as is the case for our sample
