Appendices and Tables Table 1:

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Appendices and Tables

Table 1:

Strategic Choice under Conditions of Bounded Rationality (Hambrick and Mason, 1984)

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Table 3:

Operationalization of innovativeness. Garcia and Calantone (2002)

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Table 5:

2007 Industrial R&D Investment Scoreboard by sector

_InvestmentR&D _SalesNet Employees

Rank Company ICB _Sector Country 2006 change _06/05 change _05/04 change _04/03 2006 Change _06/05 Change _05/04 Change _04/03 2006 change _06/05

€m % % % €m % % % # %

R&D/Net

Sales ratio Operating Profit Employees R&D/ Market Capitalization Expenditures Capital

2006 2005 2006 2006 2005 2006 change _06/05 2006 2005

% % % of Net _Sales €K €K €m % % of Net Sales % of Net _Sales

Table 6:

Companies in the sample

Innovative Industry

Non-Innovative Industry

Pharmaceuticals

Oil & Gas

GlaxoSmithKline Royal Dutch Shell

Sanofi-Aventis TOTAL AstraZeneca BP

Boehringer Ingelheim Eni

Novo Nordisk Repsol YPF

Merck DONG Energy

UCB BG ALTANA OMV

Lundbeck Neste Oil

Shire

Oil equipment

Elan CGGVeritas Ipsen Tenaris

Schwarz Pharma Technip

Nycomed SBM Offshore

Gedeon Richter Socotherm

Krka Sondex

!! ALK-Abello Expro

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Recordati KBC Advanced Technologies

Stada Arzneimittel

Electricity

Evotec AREVA

Medivir Electricite de France

NicOx Vattenfall

Biotest Energie Baden

Franz Haniel & Cie Enel

Zentiva British Energy

ProStrakan Fortum

Meda Pohjolan Voima

Allergy Therapeutics Teollisuuden Voima

Hikma Pharmaceuticals Cez

Sanochemia Pharmazeutika Conergy

Omega Pharma Scottish and Southern Energy

Norbrook Laboratories Verbund

Boiron Vapo

Biolitec International Power

Lavipharm

Gas & water

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Appendix A1:

Boxplot R&D Intensity variable

RD_Int 40,000 20,000 0,000 11 18 29 21

Appendix: A1.1 Transformed R&D Intensity variable

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Appendix A3:

Boxplot TMT_Tenure

TMT_Tenure 25,00 20,00 15,00 10,00 5,00 0,00 33 34 48 35

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Org_Tenure 40,00

20,00

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Appendix A5:

Boxplot Control_Age Control_Age 200 150 100 50 0

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logSize 5,00 4,00 3,00 2,00

Appendix B1:

Normal Probability Plot

1,0 0,8 0,6 0,4 0,2 0,0 1,0 0,8 0,6 0,4 0,2 0,0 E x pe ct ed C u m P rob

Normal P-P Plot of RD_Int

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1,0 0,8 0,6 0,4 0,2 0,0

Observed Cum Prob

1,0 0,8 0,6 0,4 0,2 0,0 E x pe ct ed C u m P rob

Normal P-P Plot of Regression Standardized Residual

Dependent Variable: dummyrd

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1,0 0,8 0,6 0,4 0,2 0,0 1,0 0,8 0,6 0,4 0,2 0,0 Exp e ct ed C u m Pr o b

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Appendix B3

: Normal Probability Plot

1,0 0,8 0,6 0,4 0,2 0,0 1,0 0,8 0,6 0,4 0,2 0,0 E xpected C u m P rob

Normal P-P Plot of TMT_Tenure

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1,0 0,8 0,6 0,4 0,2 0,0

Observed Cum Prob

1,0 0,8 0,6 0,4 0,2 0,0 Ex pec ted C u m Pr ob

Normal P-P Plot of dummytmt

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1,0 0,8 0,6 0,4 0,2 0,0 1,0 0,8 0,6 0,4 0,2 0,0 Exp e ct ed C u m Pr o b

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Appendix B5:

Normal Probability Plot

1,0 0,8 0,6 0,4 0,2 0,0 1,0 0,8 0,6 0,4 0,2 0,0 E xpe ct e d Cum P rob