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R&D and firm growth rate variance

Author

Listed:
  • Alex Coad

    (Max Planck Institute of Economics, Jena, Germany)

  • Rekha Rao

    (School of Management, University of Bath)

Abstract

Investment in R&D is positively associated with the variance of sales growth and, to a lesser extent, employment growth. The magnitude of this effect has not increased in recent decades, however.

Suggested Citation

  • Alex Coad & Rekha Rao, 2010. "R&D and firm growth rate variance," Economics Bulletin, AccessEcon, vol. 30(1), pages 702-708.
    • Handle: RePEc:ebl:ecbull:eb-09-00620
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2010/Volume30/EB-10-V30-I1-P65.pdf
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    References listed on IDEAS

    as
    1. Paul A. Geroski & Stephen J. Machin & Christopher F. Walters, 1997. "Corporate Growth and Profitability," Journal of Industrial Economics, Wiley Blackwell, vol. 45(2), pages 171-189, June.
    2. Giulio Bottazzi & Alex Coad & Nadia Jacoby & Angelo Secchi, 2011. "Corporate growth and industrial dynamics: evidence from French manufacturing," Applied Economics, Taylor & Francis Journals, vol. 43(1), pages 103-116.
    3. Bottazzi, Giulio & Dosi, Giovanni & Lippi, Marco & Pammolli, Fabio & Riccaboni, Massimo, 2001. "Innovation and corporate growth in the evolution of the drug industry," International Journal of Industrial Organization, Elsevier, vol. 19(7), pages 1161-1187, July.
    4. Erik Stam & Karl Wennberg, 2009. "The roles of R&D in new firm growth," Small Business Economics, Springer, vol. 33(1), pages 77-89, June.
    5. Werner Hölzl, 2009. "Is the R&D behaviour of fast-growing SMEs different? Evidence from CIS III data for 16 countries," Small Business Economics, Springer, vol. 33(1), pages 59-75, June.
    6. Micheline Goedhuys & Leo Sleuwaegen, 2010. "High-growth entrepreneurial firms in Africa: a quantile regression approach," Small Business Economics, Springer, vol. 34(1), pages 31-51, January.
    7. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
    8. repec:bla:jindec:v:45:y:1997:i:2:p:171-89 is not listed on IDEAS
    9. repec:ebl:ecbull:v:12:y:2008:i:9:p:1-15 is not listed on IDEAS
    10. MacKinnon, James G. & White, Halbert, 1985. "Some heteroskedasticity-consistent covariance matrix estimators with improved finite sample properties," Journal of Econometrics, Elsevier, vol. 29(3), pages 305-325, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Diego F. Grijalva & Valeria Ayala & Paúl A. Ponce & Yelitza Pontón, 2018. "Does firm innovation lead to high growth? Evidence from Ecuadorian firms," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 37(75), pages 697-726, May.
    2. Leonardo Rocha Andrade & Leonardo Q. Cardenas & Fernando Dias Lopes & Fernando P. S. Oliveira & Kaio Cesar Fernandes, 2018. "The Impact of R&D Investments on Performance of Firms in Different Degrees of Proximity to the Technological Frontier," Economics Bulletin, AccessEcon, vol. 38(2), pages 1156-1170.

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    More about this item

    Keywords

    R&D; Firm growth; growth rate variance; employment growth; innovation;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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