Firm growth and R&D expenditure

Arbeitspapier

We apply a panel vector autoregression model to a firm-level longitudinal database to observe the co-evolution of sales growth, employment growth, profits growth and growth of R&D expenditure. Contrary to expectations, profit growth seems to have little detectable effect on R&D investment. Instead, firms appear to increase their total R&D expenditure following growth in sales and growth of employment. In a sense, firms behave 'as if' they aim for a roughly constant ratio of R&D to employment (or sales). We observe heterogeneous effects for growing or shrinking firms however, suggesting that firms are less willing to reduce their R&D levels following a negative growth shock than they are willing to increase R&D after a positive shock.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Papers on Economics and Evolution ; No. 0710

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Firm Objectives, Organization, and Behavior: General ; Market Structure, Firm Strategy, and Market Performance: General ; Management of Technological Innovation and R&D
• Thema: Firm Growth ; Panel VAR ; R&D expenditure ; Industrial Dynamics ; Unternehmenswachstum ; Industrielle Forschung ; Forschungskosten ; USA

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Coad, Alexander ; Rao, Rekha
• Ereignis: Veröffentlichung
• (wer): Max Planck Institute of Economics
• (wo): Jena
• (wann): 2007

Weitere Informationen

• Handle: http://hdl.handle.net/10419/31852
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ