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Investment, R&D and Financial Constraints in Britain and Germany Author info | Abstract | Publisher info | Download info | Related research | Statistics Stephen Bond
Dietmar Harhoff
John Van Reenen
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This paper analyzes di¤erences in R&D spending and in the impact of R&Don productivity between German and UK ¿rms. We con¿rm that German ¿rmsspend signi¿cantly larger amounts on R&D than their UK counterparts, even aftercontrolling for ¿rm size and industry e¤ects. Using a dynamic production functionapproach, we ¿nd that the R&D output elasticity is approximately the same inboth countries, implying a much larger rate of return on R&D in the UK than inGermany. We discuss several explanations for this result.
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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number
dp0595.
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Date of creation: Dec 2003Date of revision:
Handle: RePEc:cep:cepdps:dp0595Contact details of provider: Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP
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Keywords: Corporate governance ; R&D ; productivity ; ¿nancial constraints ; paneldata ; Other versions of this item:
Find related papers by JEL classification: L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Bond, Stephen R & Jenkinson, Tim, 1996.
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Journal of Econometrics ,
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Richard Blundell & Steve Bond, 1995.
"Initial conditions and moment restrictions in dynamic panel data models ,"
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"Dynamic Investment Models and the Firm's Financial Policy ,"
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"Plant-Level Adjustment and Aggregate Investment Dynamics ,"
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