Title: R&D resources and diversification: controlling for indirect diversification and endogeneity

Authors: Jose Ignacio Lopez-Sanchez, Beatriz Minguela-Rata, Antonio Rodriguez-Duarte, Francesco D. Sandulli

Addresses: Grupo de Investigacion de Produccion y Tecnologias de la Informacion y las Comunicaciones, Departamento de Organizacion de Empresas, Facultad de Ciencias Economicas y Empresariales, Universidad Complutense de Madrid, Campus de Somosaguas Madrid 28223, Spain. ' Grupo de Investigacion de Produccion y Tecnologias de la Informacion y las Comunicaciones, Departamento de Organizacion de Empresas, Facultad de Ciencias Economicas y Empresariales, Universidad Complutense de Madrid, Campus de Somosaguas Madrid 28223, Spain. ' Grupo de Investigacion de Produccion y Tecnologias de la Informacion y las Comunicaciones, Departamento de Organizacion de Empresas, Facultad de Ciencias Economicas y Empresariales, Universidad Complutense de Madrid, Campus de Somosaguas Madrid 28223, Spain. ' Grupo de Investigacion de Produccion y Tecnologias de la Informacion y las Comunicaciones, Departamento de Organizacion de Empresas, Facultad de Ciencias Economicas y Empresariales, Universidad Complutense de Madrid, Campus de Somosaguas Madrid 28223, Spain

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.

Keywords: patents; diversification strategy; R&D; research and development; technological assets; Spanish firms; endogeneity; technological innovation; subsidiaries; Spain; intangible assets.

DOI: 10.1504/IJTM.2006.009232

International Journal of Technology Management, 2006 Vol.35 No.1/2/3/4, pp.136 - 155

Published online: 13 Mar 2006 *

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