Intramural and external R&D: evidence for complementarity or substitutability

The aim of this study is to ascertain the impact of two firm innovation strategies—namely, intramural R&D and external R&D, including either contracted R&D and import of technology, upon total factor productivity (TFP). In order to evaluate these effects we consider robust estimates of TFP through a GMM approach where we account for the diverse innovation strategies carried out by firms (intramural only, external only or both). Using data for...