FACTORS INFLUENCING THE SIZE OF COMPANY BUDGETS FOR RESEARCH AND DEVELOPMENT

Abstract

This article focusses on the question of ‘discretion’ as it relates to the level of R & D budgets in individual companies. On the basis of a literature review, factors said to influence the level of R & D spending were identified. These factors then formed the basis for an empirical study, undertaken in 1977, into the factors influencing the level of R & D budgets in a sample of sixteen Australian companies which had, in the Australian context, large R&D involvements. It was found that a considerable number of factors, of varying degrees of importance, influenced budget levels. The conclusion drawn from this information is that the interaction between these factors is likely to give rise to ..