Does R&D investment increase SME survival during a recession?

Hyejin Jung, JungTae Hwang and Byung-Keun Kim

Technological Forecasting and Social Change, 2018, vol. 137, issue C, 190-198

Abstract: Using data from 588 Korean small and medium-sized enterprises (SMEs) for 2008–2014, this study investigates whether R&D investment can affect the probability of a firm's survival during a recession period. We find that the effect of R&D investment is not identical in all firms. R&D investment is shown to be a poor choice for general firms to survive; however, it is an effective strategy for firms that are innovative and capable of producing intellectual properties during recessionary periods. We also find firm size and industry growth can lower the probability of exit.

Keywords: Economic recession; R&D investment; Innovative firm; Survival (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (27)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:137:y:2018:i:c:p:190-198

DOI: 10.1016/j.techfore.2018.07.042

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