Articles - Nooteboom (1994)

4 important questions on Articles - Nooteboom (1994)

In R&D, small firms tend to participate less, but when they do they appear

to spend more, per unit of firm size, and to be more productive. While this is likely to depend on the type of industry, the evidence is that it applies in most industries.

Perhaps the most important characteristic of small business is

its diversity, and the article gives the conditions and sources of it. Other core characteristics are small scale, personality and independence of the small firm.

The conditions that allow for diversity lie in the extent to which

managers or entrepreneurs are disciplined to adhere to common standards of profit or conduct.
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Large business is relatively strong in more

fundamental research and invention and efficient pro- duction and distribution, which exploits effects of scale and scope. Thus small and large business play complementary roles along the life cycles of products or technical trajectories.

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