R&D resources and diversification: controlling for indirect diversification and endogeneity
by Jose Ignacio Lopez-Sanchez, Beatriz Minguela-Rata, Antonio Rodriguez-Duarte, Francesco D. Sandulli
International Journal of Technology Management (IJTM), Vol. 35, No. 1/2/3/4, 2006

Abstract: This work studies the impact of technological innovation activities on the diversification strategy of the firm. This work contributes to the research on this field controlling for the endogeneity of the patenting and diversification decisions. Moreover, it improves previous research by measuring not only direct but also indirect diversification. On the basis of a sample of 983 industrial Spanish firms, the results show that innovation drives diversification, while diversification does not influence innovation decisions.

Online publication date: Mon, 13-Mar-2006

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