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Technical Change and Firm Size: The Pharmaceutical Industry

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Date
1974
Authors
Gusen, P
Vernon, John M
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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 article
Subject
elasticity of technical change
Permalink
https://hdl.handle.net/10161/2004
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