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The medium-term effect of R&D on firm growth

Author

Listed:
  • Capasso, M.

    (SBE, Maastricht University)

  • Treibich, T.G.

    (SBE, Maastricht University)

  • Verspagen, B.

    (UNU-MERIT)

Abstract

This study analyses the medium-term effect of RD expenditure on firm employment growth. Four cross-sectional waves of an innovation survey conducted in the Netherlands have been used to evaluate the effect on firm growth in the five years following the investment. Panel data fixed effect techniques, also allowing for selection bias corrections, indicate a positive influence of RD on growth. Limited dependent variable models have been used throughout the whole analysis to consider explicitly the cases of firms exiting the market in the analysed medium term.

Suggested Citation

  • Capasso, M. & Treibich, T.G. & Verspagen, B., 2014. "The medium-term effect of R&D on firm growth," MERIT Working Papers 2014-001, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2014001
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    More about this item

    Keywords

    R&D expenditure; employment growth; firm growth; management of technological innovation; innovation; R&D; research and development;
    All these keywords.

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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