"Determinants of R&D Activities by Start-up Firms: Evidence from Japan"

The start-up of new businesses has been attracting considerable attention due to their potential contribution to innovation. However, there are few econometric studies on the determinants of R&D by start-up firms. Using firm-level, industry-level, and regional data, this paper examines the determinants of R&D investment by Japanese start-up firms in the manufacturing sector. Specifically, this study employs probit analysis on the probability of R&D investment and Tobit analysis on R&D intensity. Empirical results demonstrate that firm size and appropriability have significant positive impacts on both the probability of R&D investment and R&D intensity, while technological opportunity and the regional agglomeration of research institutes and human resources have significant positive effects on R&D intensity. These findings highlight the importance of regional intellectual infrastructure in promoting R&D of start-up firms