Type
Article
Title
The medium-term effect of R&D on firm growth
In
Small Business Economics
Author(s)
CAPASSO Marco - Maastricht University (Author)
TREIBICH Tania (Author)
VERSPAGEN Bart - École Nationale de la Statistique et de l'Administration Économique (ENSAE ParisTech) (Author)
Editor
NL
Volume
45
Number
1
Pages
39 - 62 p.
ISSN
0921898X
Keywords
Firm growth, R&D expenditure, Industrial dynamics, Quantile regression
Abstract
EN
This study analyses the effect of R&D expenditure on firm employment growth in the medium term, using six cross-sectional waves of an innovation survey conducted in the Netherlands in all sectors. The analysis is focused on firms having positive R&D expenditure and investigates whether higher investments in R&D (in proportion to firm turnover) translate into higher medium-term growth rates. Comparisons with growth on a shorter term are conducted by following the firm size evolution since the R&D investment for five consecutive years and allowing for firm exit. At all time terms, quantile regression techniques indicate that a higher R&D has a positive effect on high growers and allows a higher number of firms to be high growers. Still, once a firm invests in R&D, even if a higher investment makes the firm more likely to have a very good performance, it does not make it less likely to have a bad one.

BIBLIOGRAPHIC QUOTE
EXPORT
MOST RECENT PUBLICATIONS OF THE AUTHORS