Technical Change and Firm Size: The Pharmaceutical Industry
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
Type
Journal articlePermalink
https://hdl.handle.net/10161/2004Collections
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