Abstract:

A causal model is presented that predicts the relationship between the organizational structure and location of the high technology firm on the one hand and its R&D employment intensity on the other. The organizational structure of the firm is treated in two ways. The intra-organizational (internal) structure of the firm is analysed and found to be significantly and negatively related to the level of R&D employment in the firm. This is contrary to the hypothesisied direction of relationship. Variables representing the inter-organizational environment of the firm however are found to be associated with R&D employment intensity in the manner expected. The results further show that R&D employment intensity is positively associated with metropolitan location unmediated by the effects of firm size. This suggests that small high technology firms due to their “liability of newness” and large firms due to their complex inter-organizational environments are dependent on a metropolitan location.

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