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Making R&D efforts profitable: the role of absorptive capacity and policy implications in an emerging economy setting

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  • Claudio Petti

Abstract

This paper explores the influence of a firm?s absorptive capacity on the profitability of one thousand ninety-six Chinese firms. In addition to extending the findings of prior studies on the positive effects of absorptive capacity on a firm?s performance in the context of an emerging economy, empirical results support the main hypothesis of the positive mediating role of absorptive capacity in the relationship between R&D efforts and profitability. These effects, together with the attempt to investigate absorptive capacity outside the usual R&D context using a capability-based operationalization, will lead the discussion towards the role of public policies in enhancing the impact of a firm?s internal R&D efforts through sustaining the development of their "soft" absorptive capacity with complementary investments in compensation, motivation and the development of human resources.

Suggested Citation

  • Claudio Petti, 2014. "Making R&D efforts profitable: the role of absorptive capacity and policy implications in an emerging economy setting," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2014(2), pages 67-97.
    • Handle: RePEc:fan:polipo:v:html10.3280/poli2014-002004
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    Cited by:

    1. Claudio Petti & Lauretta Rubini & Silvia Podetti, 2017. "Government Support and R&D Investment Effectiveness in Chinese SMEs: A Complex Relationship," Asian Economic Papers, MIT Press, vol. 16(1), pages 201-226, Winter/Sp.

    More about this item

    Keywords

    Ricerca e sviluppo; capacit? assorbitiva; performance; Cina;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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