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R&D and productivity in Danish firms: some empirical evidence

Author

Listed:
  • Valdemar Smith
  • Mogens Dilling-Hansen
  • Tor Eriksson
  • Erik Strøjer Madsen

Abstract

The aim of the paper is to examine the relationship between R&D capital and productivity using microdata for Danish manufacturing firms. The influence of factors such as ownership, innovative characteristics and source of funding accounted for. The return to accumulated R&D capital is estimated to be in the neighbourhood of 9-12%, whereas the short-run effect of R&D is insignificant. Furthermore, the direct influence from foreign ownership, source of funding accounted for, innovative characteristics and ownership dispersion on productivity are analysed. However, none of the factors seem to have an impact on firm productivity. The same is the case for the indirect influence coming from interaction with accumulated R&D capital.

Suggested Citation

  • Valdemar Smith & Mogens Dilling-Hansen & Tor Eriksson & Erik Strøjer Madsen, 2004. "R&D and productivity in Danish firms: some empirical evidence," Applied Economics, Taylor & Francis Journals, vol. 36(16), pages 1797-1806.
    • Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1797-1806
    DOI: 10.1080/0003684042000227895
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    2. Laia Castany & Enrique López-Bazo & Rosina Moreno, 2007. "Decomposing differences in total factor productivity across firm size," Working Papers XREAP2007-01, Xarxa de Referència en Economia Aplicada (XREAP), revised Mar 2007.
    3. Ugur, Mehmet & Trushin, Eshref & Solomon, Edna & Guidi, Francesco, 2016. "R&D and productivity in OECD firms and industries: A hierarchical meta-regression analysis," Research Policy, Elsevier, vol. 45(10), pages 2069-2086.
    4. Pedro de Faria & Francisco Lima, 2012. "Interdependence and spillovers: is firm performance affected by others’ innovation activities?," Applied Economics, Taylor & Francis Journals, vol. 44(36), pages 4765-4775, December.
    5. Minjia Chen & Alessandra Guariglia, 2011. "Financial constraints and firm productivity in China: do liquidity and export behavior make a difference?," Discussion Papers 11/09, University of Nottingham, GEP.
    6. Laia Castany, 2008. "The Role of Firm Size in Training Provision Decisions: evidence from Spain," Economics of Education Working Paper Series 0028, University of Zurich, Department of Business Administration (IBW).
    7. Tomas Havranek & Anna Sokolova, 2016. "Do Consumers Really Follow a Rule of Thumb? Three Thousand Estimates from 130 Studies Say "Probably Not"," Working Papers 2016/08, Czech National Bank.
    8. Elvis Korku Avenyo & Fiona Tregenna & Erika Kraemer-Mbula, 2021. "Do Productive Capabilities Affect Export Performance? Evidence from African Firms," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(2), pages 304-329, April.
    9. Baghana, Rufin, 2010. "Public R&D Subsidies and Productivity: Evidence from Firm-Level Data in Quebec," MERIT Working Papers 2010-055, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. Laia Castany, 2008. "The Role of Firm Size in Training Provision Decisions: evidence from Spain," IREA Working Papers 200808, University of Barcelona, Research Institute of Applied Economics, revised Jun 2008.
    11. Green, Edward J., 2009. "Heterogeneous producers facing common shocks: An overlapping-generations example," Journal of Economic Theory, Elsevier, vol. 144(6), pages 2266-2276, November.
    12. Harris, Richard & Li, Qian Cher & Trainor, Mary, 2009. "Is a higher rate of R&D tax credit a panacea for low levels of R&D in disadvantaged regions?," Research Policy, Elsevier, vol. 38(1), pages 192-205, February.
    13. Lööf, Hans & Perez, Luis & Baum, Christopher F, 2018. "Directed Technical Change in Clean Energy: Evidence from the Solar Industry," Working Paper Series in Economics and Institutions of Innovation 470, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    14. Zélia Serrasqueiro & Paulo Maçãs Nunes, 2008. "Performance and size: empirical evidence from Portuguese SMEs," Small Business Economics, Springer, vol. 31(2), pages 195-217, August.

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    More about this item

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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