at the start of the new millennium (1997–2001). Modest size advantages in
R&D effectiveness suggest that rivalry among large R&D intensive firms has
the effect of reducing but not eliminating the superior long-term profitability of
R&D among giant U.S. corporations. In addition, this study finds that the
long-term profitability of R&D investments tends to rise with institutional stock
ownership across all firm size classes in the manufacturing sector. These
findings suggest that a beneficial monitoring function is being fulfilled by
institutional investors.
I.R&D AS A SOURCE OF INTANGIBLE CAPITAL
An emerging body of research considers the market-value ...
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