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Determinants of investment and innovation expenditure in Polish manufacturing industries

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  • Michał Brzozowski

Abstract

This article analyses determinants of sectoral R&D and innovation expenditure as well as investment in Polish manufacturing industries in 1994-2004. The estimated coefficients for user cost of capital are generally in line with the neoclassical model of investment, except for R&D intensity. The latter are primarily discouraged by systemic uncertainty. The rate of growth of sales is not a prominent determinant of investment and innovation expenditure. Market concentration coupled with uncertainty has a damaging effect on physical capital investment but it promotes R&D expenditure and leaves innovation intensity unaltered.

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  • Michał Brzozowski, 2008. "Determinants of investment and innovation expenditure in Polish manufacturing industries," Post-Communist Economies, Taylor & Francis Journals, vol. 20(2), pages 219-230.
    • Handle: RePEc:taf:pocoec:v:20:y:2008:i:2:p:219-230
    DOI: 10.1080/14631370802018981
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