The determinants of research and development
intensity in the UK
MICHAEL WATERSON and ARCESIO LOPEZ
University of Newcastle upon Tyne, Newcastle upon Tyne, UK


The primary purpose of this paper is to discover whether research and development
expenditures are related to firm size, market structure and technological influences in the
UK. After providing a preliminaty analysis of R & D activity, the paper tackles the problem
of the rather limited data set. Two approaches are adopted: first, analysing part of the
relationship using a broadly based sample, and second, providing data on a more narrowly
based sample over three years. The results suggest that firm size and concentration have
virtually no influence on R & D intensity in the UK among firms with R & D programmes.

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