Publications Office of the EU
R&D and non-linear productivity growth of heterogeneous firms
DisplayCustomHeader
MyPortal
English
BasketSummary
Web Content Display (Global)
Publication Detail Actions Portlet

Utilities

Publication Detail Actions Portlet
 Rate this publication
custom-survey-notification
Publication Detail Portlet

Publication detail

Home

R&D and non-linear productivity growth of heterogeneous firms

Publication metadata

The present paper studies the relationship between R&D investment and firm productivity growth by explicitly accounting for non-linearities in the R&D-productivity relationship and inter-sectoral firm heterogeneity. In order to address these issues, we employ a two step estimation approach, and match two firm-level panel data sets for the OECD countries, which allows us to relax both the linearity and homogeneity assumptions of the canonical Griliches (1979) knowledge capital model. Our results suggest that: (i) R&D investment increases firm productivity with an average elasticity of 0.15; (ii) the impact of R&D investment on firm productivity is differential at different levels of R&D intensity – the productivity elasticity ranges from -0.02 for low levels of R&D intensity to 0.33 for high levels of R&D intensity; (iii) the relationship between R&D expenditures and productivity growth is non-linear, and only after a certain critical mass of R&D is reached, the productivity growth is significantly positive; (iv) there are important inter-sectoral differences with respect to R&D investment and firm productivity – high-tech sectors’ firms not only invest more in R&D, but also achieve more in terms of productivity gains connected with research activities.
View more
View less
ISSN 1831-9424
ISBN 978-92-79-28092-4
DOI 10.2791/41792
Catalogue number LF-NA-25693-EN-N
PDF
ISSN 1831-9424 ISBN 978-92-79-28092-4 DOI 10.2791/41792 Catalogue number LF-NA-25693-EN-N
  • Released on EU publications website:
This publication is available for download in web format (PDF) and in print-quality format (PDF/X). For more information on how to print your own copy of EU publications, please refer to our FAQ section.
Publication Viewer

Document viewer

Pop up window annotations