Technical Change and Firm Size: The Pharmaceutical Industry

Loading...
Thumbnail Image

Date

1974

Authors

Vernon, John M

Journal Title

Journal ISSN

Volume Title

Repository Usage Stats

256
views
510
downloads

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

Department

Description

Provenance

Citation


Unless otherwise indicated, scholarly articles published by Duke faculty members are made available here with a CC-BY-NC (Creative Commons Attribution Non-Commercial) license, as enabled by the Duke Open Access Policy. If you wish to use the materials in ways not already permitted under CC-BY-NC, please consult the copyright owner. Other materials are made available here through the author’s grant of a non-exclusive license to make their work openly accessible.