Abstract
The study aims at analyzing expenditures of the science and technology research and development of business firms. It also evaluates whether or not an increase in the potential and ability of employees in business firms enhances the opportunity of succeeding in science and technology research and development. Moreover, it determines to what extent the results of their science and technology research and development is beneficial to an industry as a whole. Economic models are constructed and tested by the multiple regression analysis and the logistic regression analysis techniques. Data from 141 business firms, which were willing to collaborate and provide information, were collected and analyzed.
The findings show that a change in expenditures of the science and technology research and development of business firms varies directly with the ratio of expenditures of major components of science and technology research and development to the total expentitures of the science and technology research and development. The accomplishment of undertaking science and technology research and development of business firms depends significantly on the proportion of staffs doing science and technology research and development to all the staffs available in the firms. Desirable spill-over effects of the science and technology research and development of a firm is spread evenly to other firms within an industry. It is apparent that no factors pertaining to industries under consideration cause desirable external effects gained by one industry more than the others.
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