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R&D as an investment in knowledge based capital

Author

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  • Albert N. Link

    (University of North Carolina at Greensboro)

  • Christopher A. Swann

    (University of North Carolina at Greensboro)

Abstract

It is well documented that knowledge based capital (KBC) is a driver of economic growth and development and that knowledge acquired through scientific research and development (R&D) is one important component of KBC. In this paper we examine the importance of R&D to a firm for exploring new business opportunities using information from the AEGIS database. We find that, among other things, human capital measured in terms of the educational background of the firm’s founders is a positive and statistically significant covariate with the importance of R&D. We conclude the paper with public policy recommendations for enhancing the educational component of the human capital resource base of firms.

Suggested Citation

  • Albert N. Link & Christopher A. Swann, 2016. "R&D as an investment in knowledge based capital," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(1), pages 11-24, March.
    • Handle: RePEc:spr:epolin:v:43:y:2016:i:1:d:10.1007_s40812-015-0024-3
    DOI: 10.1007/s40812-015-0024-3
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    3. Dutz, Mark A. & Kannebley, Sergio Jr. & Scarpelli, Maira & Sharma, Siddharth, 2012. "Measuring intangible assets in an emerging market economy: an application to Brazil," Policy Research Working Paper Series 6142, The World Bank.
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    6. Barry Bozeman & Albert N. Link, 2015. "Toward an assessment of impacts from US technology and innovation policies," Science and Public Policy, Oxford University Press, vol. 42(3), pages 369-376.
    7. Bronwyn H. Hall & Nathan Rosenberg (ed.), 2010. "Handbook of the Economics of Innovation," Handbook of the Economics of Innovation, Elsevier, edition 1, volume 1, number 1.
    8. Charles R. Hulten & Janet X. Hao, 2012. "The Role Of Intangible Capital in the Transformation and Growth of the Chinese Economy," NBER Working Papers 18405, National Bureau of Economic Research, Inc.
    9. Chong Ju Choi & Carla C. J. M. Millar & Caroline Y. L. Wong, 2005. "Knowledge and Competition," Palgrave Macmillan Books, in: Knowledge Entanglements, chapter 0, pages 97-117, Palgrave Macmillan.
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    Cited by:

    1. Dmitri Vinogradov & Elena Shadrina & Marina Doroshenko, 2018. "KIBS for public needs," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(4), pages 443-473, December.
    2. James Boles & Albert N. Link, 2017. "On the R&D/marketing interface in knowledge intensive entrepreneurial firms," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 943-952, September.
    3. Sara Amoroso & David B. Audretsch & Albert N. Link, 2018. "Sources of knowledge used by entrepreneurial firms in the European high-tech sector," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 8(1), pages 55-70, March.
    4. Elert, Niklas & Henrekson, Magnus, 2021. "Innovative Entrepreneurship as a Collaborative Effort: An Institutional Framework," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 17(4), pages 330-435, June.
    5. James A. Cunningham & Albert N. Link, 2016. "Exploring the effectiveness of research and innovation policies among European Union countries," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 415-425, June.
    6. Tsung-Chun Chen & Yenchun Jim Wu, 2020. "The Influence of R&D Intensity on Financial Performance: The Mediating Role of Human Capital in the Semiconductor Industry in Taiwan," Sustainability, MDPI, vol. 12(12), pages 1-18, June.
    7. Nancy J. Hodges & Albert N. Link, 2017. "On the Growth of European Apparel Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(2), pages 489-498, June.
    8. Sara Amoroso & Albert N. Link, 2021. "Intellectual property protection mechanisms and the characteristics of founding teams," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(9), pages 7329-7350, September.
    9. Chiara Criscuolo & Angelo Secchi, 2016. "Resources (mis)allocation, innovation and the competitiveness of Europe," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(1), pages 1-9, March.

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    More about this item

    Keywords

    Entrepreneurship; R&D; Knowledge based capital; Human capital; Technology; Innovation; AEGIS;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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