IDEAS home Printed from https://ideas.repec.org/a/kap/jtecht/v49y2024i4d10.1007_s10961-023-10044-8.html
   My bibliography  Save this article

Supply chain constraints and research spending: an international investigation

Author

Listed:
  • Dirk Dohse

    (Kiel Institute for the World Economy)

  • Rajeev K. Goel

    (Kiel Institute for the World Economy
    Institute for Studies on the Mediterranean/National Research Council
    Illinois State University)

  • James W. Saunoris

    (Eastern Michigan University)

Abstract

Supply chain issues have garnered considerable attention during recent years, especially with the advent of the COVID-19 pandemic. Whereas many causes and effects of supply chains have been studied, this paper focuses on an aspect that has largely been ignored—the effects of supply chain constraints on research and development (R&D) spending. Using cross-country data from numerous countries over the past decade, we find support for our main hypothesis that supply chain constraints undermine R&D spending. However, different dimensions of the supply chain have quantitatively different effects on research spending. Interestingly, we find evidence of the legacy of supply chain issues from pre-pandemic days to impact more recent R&D spending. Finally, the main findings are robust to consideration of reverse causality issues. Implications for technology policy are discussed.

Suggested Citation

  • Dirk Dohse & Rajeev K. Goel & James W. Saunoris, 2024. "Supply chain constraints and research spending: an international investigation," The Journal of Technology Transfer, Springer, vol. 49(4), pages 1369-1386, August.
  • Handle: RePEc:kap:jtecht:v:49:y:2024:i:4:d:10.1007_s10961-023-10044-8
    DOI: 10.1007/s10961-023-10044-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10961-023-10044-8
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s10961-023-10044-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Branco, Catarina & Dohse, Dirk C. & Pereira dos Santos, João & Tavares, José, 2023. "Nobody’s gonna slow me down? The effects of a transportation cost shock on firm performance and behavior," Journal of Urban Economics, Elsevier, vol. 136(C).
    2. Rajeev Goel, 2009. "Technological complementarities, demand, and market power," Netnomics, Springer, vol. 10(2), pages 161-170, October.
    3. Jan De Loecker, 2013. "Detecting Learning by Exporting," American Economic Journal: Microeconomics, American Economic Association, vol. 5(3), pages 1-21, August.
    4. Goel, Rajeev K. & Nelson, Michael A. & Goel, Viraat Y., 2021. "COVID-19 vaccine rollout—scale and speed carry different implications for corruption," Journal of Policy Modeling, Elsevier, vol. 43(3), pages 503-520.
    5. Dirk Czarnitzki & Andrew A. Toole, 2013. "The R&D Investment–Uncertainty Relationship: Do Strategic Rivalry and Firm Size Matter?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 34(1), pages 15-28, January.
    6. María J. Ibáñez & Maribel Guerrero & Claudia Yáñez-Valdés & Sebastián Barros-Celume, 2022. "Digital social entrepreneurship: the N-Helix response to stakeholders’ COVID-19 needs," The Journal of Technology Transfer, Springer, vol. 47(2), pages 556-579, April.
    7. Dixit, Avinash, 1995. "Irreversible investment with uncertainty and scale economies," Journal of Economic Dynamics and Control, Elsevier, vol. 19(1-2), pages 327-350.
    8. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2007. "Enhanced routines for instrumental variables/generalized method of moments estimation and testing," Stata Journal, StataCorp LP, vol. 7(4), pages 465-506, December.
    9. Rajeev K. Goel & Ummad Mazhar & James W. Saunoris, 2021. "Identifying the corrupt cog in the wheel: Dimensions of supply chain logistics and cross‐country corruption," Australian Economic Papers, Wiley Blackwell, vol. 60(4), pages 693-709, December.
    10. Richard R. Nelson, 1959. "The Economics of Invention: A Survey of the Literature," The Journal of Business, University of Chicago Press, vol. 32, pages 101-101.
    11. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
    12. Stefan Lachenmaier & Ludger Wößmann, 2006. "Does innovation cause exports? Evidence from exogenous innovation impulses and obstacles using German micro data," Oxford Economic Papers, Oxford University Press, vol. 58(2), pages 317-350, April.
    13. Andrew B. Bernard & J. Bradford Jensen, 2004. "Why Some Firms Export," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 561-569, May.
    14. Goel, Rajeev K & Ram, Rati, 1994. "Research and Development Expenditures and Economic Growth: A Cross-Country Study," Economic Development and Cultural Change, University of Chicago Press, vol. 42(2), pages 403-411, January.
    15. Hyunseob Kim & Howard Kung, 2017. "The Asset Redeployability Channel: How Uncertainty Affects Corporate Investment," The Review of Financial Studies, Society for Financial Studies, vol. 30(1), pages 245-280.
    16. Golev, Artem & Scott, Margaretha & Erskine, Peter D. & Ali, Saleem H. & Ballantyne, Grant R., 2014. "Rare earths supply chains: Current status, constraints and opportunities," Resources Policy, Elsevier, vol. 41(C), pages 52-59.
    17. Rashidi, Kamran & Cullinane, Kevin, 2019. "Evaluating the sustainability of national logistics performance using Data Envelopment Analysis," Transport Policy, Elsevier, vol. 74(C), pages 35-46.
    18. Parast, Mahour Mellat, 2020. "The impact of R&D investment on mitigating supply chain disruptions: Empirical evidence from U.S. firms," International Journal of Production Economics, Elsevier, vol. 227(C).
    19. Goel, Rajeev K. & Saunoris, James W. & Goel, Srishti S., 2021. "Supply chain performance and economic growth: The impact of COVID-19 disruptions," Journal of Policy Modeling, Elsevier, vol. 43(2), pages 298-316.
    20. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
    21. Robert M. Salomon & J. Myles Shaver, 2005. "Learning by Exporting: New Insights from Examining Firm Innovation," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 14(2), pages 431-460, June.
    22. Sube Singh & Ramesh Kumar & Rohit Panchal & Manoj Kumar Tiwari, 2021. "Impact of COVID-19 on logistics systems and disruptions in food supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 59(7), pages 1993-2008, April.
    23. Jose Ramon Saura & Daniel Palacios-Marqués & Domingo Ribeiro-Soriano, 2023. "Leveraging SMEs technologies adoption in the Covid-19 pandemic: a case study on Twitter-based user-generated content," The Journal of Technology Transfer, Springer, vol. 48(5), pages 1696-1722, October.
    24. Tang, Chor Foon & Abosedra, Salah, 2019. "Logistics performance, exports, and growth: Evidence from Asian economies," Research in Transportation Economics, Elsevier, vol. 78(C).
    25. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    26. Kamien,Morton I. & Schwartz,Nancy L., 1982. "Market Structure and Innovation," Cambridge Books, Cambridge University Press, number 9780521293853, December.
    27. Dohse, Dirk & Niebuhr, Annekatrin, 2018. "How different kinds of innovation affect exporting," Economics Letters, Elsevier, vol. 163(C), pages 182-185.
    28. Huseyin Gulen & Mihai Ion, 2016. "Editor's Choice Policy Uncertainty and Corporate Investment," The Review of Financial Studies, Society for Financial Studies, vol. 29(3), pages 523-564.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Richard Harris & John Moffat, 2011. "R&D, Innovation and Exporting," SERC Discussion Papers 0073, Centre for Economic Performance, LSE.
    2. R Harris & Q Li, "undated". "Exporting, R&D and Absorptive Capacity in UK Establishments: Evidence from the 2001 Community Innovation Survey," Working Papers 2006_19, Business School - Economics, University of Glasgow.
    3. Massimiliano Bratti & Giulia Felice, 2012. "Are Exporters More Likely to Introduce Product Innovations?," The World Economy, Wiley Blackwell, vol. 35(11), pages 1559-1598, November.
    4. Bratti, Massimiliano & Felice, Giulia, 2009. "Exporting and Product Innovation at the Firm Level," MPRA Paper 18915, University Library of Munich, Germany.
    5. Armando Silva & Óscar Afonso & Ana Paula Africano, 2010. "Do Portuguese manufacturing firms self select to exports?," FEP Working Papers 371, Universidade do Porto, Faculdade de Economia do Porto.
    6. Rodil, Óscar & Vence, Xavier & Sánchez, María del Carmen, 2016. "The relationship between innovation and export behaviour: The case of Galician firms," Technological Forecasting and Social Change, Elsevier, vol. 113(PB), pages 248-265.
    7. Khanh Hoang, 2022. "How does corporate R&D investment respond to climate policy uncertainty? Evidence from heavy emitter firms in the United States," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(4), pages 936-949, July.
    8. Naudé, Wim & Gries, Thomas & Bilkic, Natasa, 2015. "Playing the lottery or dressing up? A model of firm-level heterogeneity and the decision to export," The Quarterly Review of Economics and Finance, Elsevier, vol. 58(C), pages 1-17.
    9. Maria Luisa Mancusi & Andrea Vezzulli & Serena Frazzoni & Zeno Rotondi & Maurizio Sobrero, 2018. "Export and Innovation in Small and Medium Enterprises: The Role of Concentrated Bank Borrowing," Economica, London School of Economics and Political Science, vol. 85(337), pages 177-204, January.
    10. Lo Turco, Alessia & Maggioni, Daniela, 2013. "Does Trade Foster Employment Growth in Emerging Markets? Evidence from Turkey," World Development, Elsevier, vol. 52(C), pages 1-18.
    11. Jingfang Zhang & Emir Malikov, 2023. "Detecting Learning by Exporting and from Exporters," Journal of Productivity Analysis, Springer, vol. 60(1), pages 1-19, August.
    12. Fulvio Castellacci & Arne Fevolden, 2014. "Capable Companies or Changing Markets? Explaining the Export Performance of Firms in the Defence Industry," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(6), pages 549-575, December.
    13. Yung, Kenneth & Cai, Qiuye & Li, Deqing Diane, 2023. "Greasing the wheels of irreversible investment: International evidence on the economic effects of corruption," Global Finance Journal, Elsevier, vol. 58(C).
    14. repec:hal:wpspec:info:hdl:2441/10021 is not listed on IDEAS
    15. Tut, Daniel & Cao, Melanie, 2021. "Capital Reallocation and Firm-Level Productivity Under Political Uncertainty," MPRA Paper 108528, University Library of Munich, Germany.
    16. Petrit Gashi & Iraj Hashi & Geoff Pugh, 2014. "Export behaviour of SMEs in transition countries," Small Business Economics, Springer, vol. 42(2), pages 407-435, February.
    17. Impullitti, Giammario & Irarrazabal, Alfonso A. & Opromolla, Luca David, 2013. "A theory of entry into and exit from export markets," Journal of International Economics, Elsevier, vol. 90(1), pages 75-90.
    18. Chen, Yanyan, 2022. "Does political turnover affect corporate investment? Evidence from China," Emerging Markets Review, Elsevier, vol. 51(PA).
    19. Hoang, Khanh & Arif, Muhammad & Nguyen, Cuong, 2022. "Corporate investment and government policy during the COVID-19 crisis," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 677-696.
    20. Mahagaonkar, Prashanth & Schweickert, Rainer & Chavali, Aditya S., 2009. "Sectoral R&D intensity and exchange rate volatility: a panel study for OECD countries," Kiel Working Papers 1531, Kiel Institute for the World Economy (IfW Kiel).
    21. Massini, Silvia & Piscitello, Lucia & Shevtsova, Yevgeniya, 2023. "The complementarity effect of exporting, importing and R&D on the productivity of Ukrainian MNEs," International Business Review, Elsevier, vol. 32(3).

    More about this item

    Keywords

    R&D; Supply chain; Infrastructure; Supply logistics; Pandemic; Globalization;
    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
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • F6 - International Economics - - Economic Impacts of Globalization

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jtecht:v:49:y:2024:i:4:d:10.1007_s10961-023-10044-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.