A resource-based analysis of the factors determining a firm's R&D activities

This paper investigates the determinants of the firm's decision to carry out R&D activities. Most empirical studies on this topic have focused on the examination of the effects of external or environmental factors. The aim of this study is to evaluate the effect of internal or organisational factors on R&D activities. Its intended contribution is therefore focused on the analysis of the role of firm's resources and capabilities in the R&D investment. Three types of resources are distinguished: financial, physical and intangible resources. Specific hypotheses about their effect on the probability of a firm carrying out R&D activities are derived and tested on a sample of 100 Spanish firms. Empirical findings suggest that intangible factors are the main determinants of the probability of a firm carrying out internal R&D. (C) 1999 Elsevier Science B.V. All rights reserved.