Market Structure, Publicly and Privately Financed R&D Spending. Empirical Evidence for Denmark

In this paper we analyse the determinants of R&D spending in Danish firms and firms and industries in the nineties. We also examine the complementarity and substitution between publicly and company financed spending taking into account the influence from market structure, barriers of entry, demand conditions and other economic factors of the market and the firm. The empirical models of R&D spending are estimated both on industry and on firm level data. This allows us to examine how the investment R&D -activities differ according to differences in the organisation of the firm, firm size and the debt burden of the firms.