KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
Innovation Strategy and Firm Performance What is the long-run impact of persistent R&D?
() and Lööf Hans
Abstract: There are systematic long-run differences in the
performance of firms explained by the R&D-strategy that each firm employs.
Controlling for unobservable heterogeneity, past performance and other firm
characteristics, this paper shows that labour productivity is, on average,
13 percent higher among firms with persistent R&D commitment and 9 percent
higher among firms which make occasional R&D efforts when compared with
non-R&D-firms. Furthermore, firms which employ a strategy with persistent
R&D efforts are rewarded with a productivity growth rate that on average is
about 2 percent higher than for other firms. The results are similar when
firm performance is measured as total sales or exports per labor input.
Keywords: R&D; Innovation-strategy; productivity; export; dynamic panel-data; (follow links to similar papers)
JEL-Codes: C23; O31; O32; (follow links to similar papers)
28 pages, September 7, 2010
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