Effects of R&D spending on Innovation by Irish and Foreign-owned Businesses

Justin Doran, Declan Jordan () and Eoin O'Leary

MPRA Paper from University Library of Munich, Germany

Abstract: This paper estimates the private returns to four different kinds of R&D spending on the probability of Irish and foreign-owned businesses engaging in product, process and organizational innovation. By providing econometric analysis of nearly 2000 businesses in the Community Innovation Survey: 2004 to 2006, it makes an important contribution to our understanding of the effects of Irish innovation policy, which has incentivized businesses to spend on R&D in Ireland. The main findings are that Irish owned businesses are significantly more likely than foreign-owned to introduce new products as a result of creative R&D work undertaken. Foreign-owned businesses, which spend nearly 6 times more per worker on R&D than Irish-owned, enjoy very high returns mostly from the purchase or licence of patents. This reflects a fundamental difference in the innovation activities of these businesses, which is critical for policymakers’ understanding of the Irish innovation system.

Keywords: Innovation Policy; Innovation Output; Research & Development (search for similar items in EconPapers)
JEL-codes: O31 R19 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-cse, nep-ino, nep-knm and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:44579

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