• Media type: E-Article
  • Title: R&D and industrial concentration in the Indonesian manufacturing industry
  • Contributor: Setiawan, Maman [Author]; Indiastuti, Rina [Author]; Hidayat, Achmad K. [Author]; Rostiana, Endang [Author]
  • Published: Basel: MDPI, 2021
  • Language: English
  • DOI: https://doi.org/10.3390/joitmc7020112
  • Keywords: R&D expenditure ; Indonesian manufacturing industry ; price-cost margin ; industrial concentration
  • Origination:
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  • Description: This research investigates the relation between research and development (R&D) expenditure and the industrial concentration in the Indonesian manufacturing industry. Pooled least square dummy variable is applied to estimate the relation between the two variables. This research uses firm-level data taken from the survey of the manufacturing industry sourced from the Indonesian Bureau of Central Statistics. This research makes contributions in calculating the percentage of R&D expenditure using the recent data and freshly estimating the relation between R&D and industrial concentration in the industry. This research finds that the percentage of R&D expenditure is relatively low in the industry. There is also a declining trend in the percentage of the R&D expenditure from the period 1994-1995 to 2017. The higher industrial concentration increases the percentage of R&D expenditure. This research also finds that R&D expenditure can be higher in the firms with market power.
  • Access State: Open Access
  • Rights information: Attribution (CC BY)