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Creamer (1976), reporting on a survey conducted by the Conference Board, presents data on overseas R & D for 1966--75 for a sample of 444 US firms, of which 265 had no foreign R & D and 179 had some. These 444 companies accounted for 55 per cent of all industrial R & D in USA, and their total R & D spending was distributed over sectors in roughly the same pattern as R & D for all US firms, with the (expected) difference that space and defence-related companies had a higher weight in the latter since they had refused to participate in the Conference Board survey.

E. (1979) 'The Structure Within Industries and Companies' Performance', Review of Economics and Statistics, vol. 61, no. 2, pp. 214--27. Rowthorn, R. and Hymer, S. (1971) International Big Business 1957-67 (London: Cambridge University Press). Shubik, M. (1959) Strategy and Market Structure (New York: Wiley). Singh, A. (1975) 'The Size and Growth of Firms', Review of Economic Studies, vol. 42, pp. 15-26. Slater, M. (1980) 'The Managerial Limitation to the Growth of Firms', Economic Journal, vo!.

19. 3 billion. In 1979, only General Motors and Ford in our sample exceeded this size. 20. 142). Thus, the negative effect of MULTI on growth did not result from MULTI's collinearity with SIZE (the lack of correlation between MULTI and SIZE may be due to the inclusion of firms of only very large size and the lack of adjustment for industry differences). Thus, any managerial cost that existed must have arisen specifically from foreign operations rather than size as such. 18. REFERENCES Arrow, K.

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