R&D and Global Manufacturing Performance

R&D intensity and manufacturing performance were evaluated in this study of 600 durable goods firms in 20 countries. In a path-analytic model, R&D intensity was significantly associated with improvements in market share (R² = 34%), controlling for firm size, previous market share, and regardless of industry or region of the world. Market share increases were also significantly correlated with improvements in manufacturing agility (R² = 4%). Agility improvement was significantly correlated with R&D intensity, and computerization in manufacturing, controlling for firm size and region, and did exhibit industry effects, with electronic equipment firms elevated on this measure. Computerization exhibited regional (not industry) differences, with South American firms depressed on this measure. The role of computerization in manufacturing and agility in firm innovativeness are discussed.