Privatization processes and the redefinition of corporate R&D boundaries
Research Policy, 2002•Elsevier
Although the economic and welfare consequences of privatization processes have been
widely studied, less attention has been paid to understanding how these processes affect
corporate research and development (R&D), and hence the innovative performance of the
firm. We propose to address these issues by combining a policy level perspective with a firm
level perspective centered around the role of corporate R&D and its changes. We use data
from a few recent privatization processes to show how and by what processes R&D activities …
widely studied, less attention has been paid to understanding how these processes affect
corporate research and development (R&D), and hence the innovative performance of the
firm. We propose to address these issues by combining a policy level perspective with a firm
level perspective centered around the role of corporate R&D and its changes. We use data
from a few recent privatization processes to show how and by what processes R&D activities …
Although the economic and welfare consequences of privatization processes have been widely studied, less attention has been paid to understanding how these processes affect corporate research and development (R&D), and hence the innovative performance of the firm. We propose to address these issues by combining a policy level perspective with a firm level perspective centered around the role of corporate R&D and its changes. We use data from a few recent privatization processes to show how and by what processes R&D activities are affected in terms of amount and origins of funds allocated, scope of projects funded, and reliance on outside collaborations. In the light of these cases, we present a framework to characterize firm level effects of government divestment to guide managerial choices in restructuring corporate R&D and governmental action to proactively counterbalance post-privatization underinvestment risks.
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