Elena Huergo

International R&D cooperation within the EU Framework Programme: empirical evidence for Spanish firms

This work aims to explain which factors determine the participation of Spanish companies in R&D consortia within the EUs Framework Programme (FP), considering that the probability that a firm takes part must be regarded as the result of a two-phase process. First, the firm decides whether to apply for an FP cooperation project or not and secondly, the project is approved or rejected. The empirical results confirm that the probability of application depends on some firm-specific variables such as its commercial presence in foreign markets, its absorptive capacity regarding incoming spillovers and its prior experience in FP proposals. With regard to the proposal award, variables related to coordination capability (leader capacity, geographical distance among partners and prior experience in R&D cooperation) are valuable determinants.

Determinants of International R&D Outsourcing: The Role of Trade

This paper investigates the determinants of international R&D outsourcing, in particular the role of trade. We sketch a monopolistic competition model with heterogeneous firms where outsourcing increases a firms fixed transaction costs as well as its productivity. Financial constraints affect the decision to outsource R&D more to nonexporters than to exporters. In contrast, exporters are more sensitive to a lack of information because they have higher losses when there is technology leakage. We test these predictions using a panel database of Spanish companies. The results highlight the relevance of information in competitive markets, and the role of trade to induce companies to engage in other globalization strategies.

Profit Margins, Adjustment Costs and the Business Cycle: An Application to Spanish Manufacturing Firms

The objective of this paper is to investigate the cyclical behaviour of markups, using a panel of Spanish manufacturing firms over the period 1990--1998. Margins are estimated from the optimal conditions derived from the firms optimisation problem, which assumes that labour inputs are subject to adjustment costs. A number of results emerge from the estimations. First, we find positive and asymmetric adjustment costs for permanent labour inputs. Second, price--cost margins are markedly procyclical. Our estimates suggest that labour adjustment costs more than double the variability of average margins with respect to Lerner indexes. Third, we find differences in the parameters of the adjustment technology across industries which make markups of intermediate and production good industries more cyclical than consumer good industries. Finally, industry--specific price--cost margins are higher in more concentrated industries. Copyright Blackwell Publishing Ltd, 2003.

Determinants of Internal versus External R&D Offshoring: Evidence from Spanish Firms

This paper analyzes the determinants of R&D offshoring of Spanish firms using infor-mation from the Panel of Technological Innovation. We find that being an exporter, continuous R&D engagement, applying for patents, being a subsidiary, and firm size are factors that positively affect the decision to offshore R&D. In addition, we obtain that the factors that influence this decision for firms that belong to a business group differ depending on whether the firm purchases R&D services within the group or through the market.

Measuring the Impact of International R&D Cooperation: The Case of Spanish Firms Participating in the EU Framework Programme

The objective of this paper is to analyse the effects of international R&D cooperation on firms’ economic performance. Our empirical analysis, based on Spanish firms’ participation in the Framework Programme (FP) between 1995 and 2005, has confirmed that: (1) cooperation within the FP has a positive impact on the technological capacity of firms, captured through intangible fixed assets and (2) the technological capacity of firms is positively related to their economic performance, measured by labour productivity.

SME Performance and Public Support for International RJVs

The objective of the present study is to analyze the impact of public support for international research joint ventures on SME performance considering two dimensions: technological and economic results. The research is also intended to examine the time pattern of this effect. For that purpose, we use a panel dataset containing information about Spanish participants in consortia supported by the SME‐specific measures of the sixth Framework Programme. Empirical evidence corroborates a direct and positive impact on technological assets of participants. On the part of the economic indicators, EBITDA per employee and labor productivity are positively influenced by the improvement of technological background. All those effects are effective three years after the end of the project, confirming that SMEs are involved in market‐oriented R&D projects.

The Impact of International Research Joint Ventures on SMEs Performance

The objective of the present study is to analyse the effect of technological cooperation on SMEs performance consideringtwo dimensions: technological and economic results. For that purpose, we use a data set containing information about participants in research joint ventures supported by the SME-specific measures of the sixth Framework Programme. Empirical evidence corroborates a direct and positive impact on technological assets of participants. On the part of the economic indicators, EBITDA per employee and sales are positively influenced by the improvement of technological background. The same results are found for productivity. All those effects are effective in the medium term, confirming that SMEs use to be involved in market-oriented R&D projects.

Empirical models of firms’ R & D: Applications

This paper is the chapter 18 of the Handbook of Game Theory and Industrial Organization (Vo. II). This chapter is devoted to the empirical models of firms’ R&D. This literature is still growing due to the increasing availability of micro-data. Taking this fact into account, the main purpose of this chapter is to provide an overview of three important topics covered by the recent literature: the determinants of firms’ R&D investment, the link between R&D, innovation and productivity, and the analysis of the R&D black box. This chapter is presented as an invitation to industrial organization practitioners, both theorists and applied, to cross the bridge (and to change sides) between theory and applications.

The Effect of R&D Services Offshoring on Skilled Employment: Firm Evidence

The offshoring of high‐tech services has greatly increased in recent years, with consequences for firms demand for skilled employment in firms. This paper specifically analyses the relationship between R&D offshoring and the demand for R&D employment using firm‐level data for Spanish manufacturing and services companies during the period 2004–11. Estimating different specifications with panel data techniques, we find that this association is statistically positive. In particular, for services firms a 1 percentage point increase in R&D offshoring raises the demand for researchers by about 11 per cent.

The Effect of High‐Tech Services Offshoring on Skilled Employment: Intra‐Firm Evidence

The offshoring of high-tech services has greatly increased in recent years, with consequences for firms demand for skilled employment in firms. This paper specifically analyzes the relationship between R&D offshoring and the demand for R&D employment using firm-level data for Spanish manufacturing and services companies during the period 2004-2009. Estimating different specifications with panel data techniques, we find that this association is statistically positive. In particular, if R&D offshoring doubles, the demand for researchers will raise by about 8%.