Research, development, and firm growth. Empirical evidence from European top R&D spending firms

Juan V. García-Manjón and M. Elena Romero-Merino

Research Policy, 2012, vol. 41, issue 6, 1084-1092

Abstract: Following recent literature, we present a model of endogenous firm growth with R&D investment as one of the main mechanisms of growth. Our study evidences a positive effect of R&D intensity on the sales growth by using OLS, quantile regressions, and GMM system estimators for a sample of 754 European firms for the 2003–2007 period. We also find this association is more intense in high-growth firms and is especially significant when referring to high-technology sectors. This paper gives empirical support to those recommendations from policy makers and business leaders for maintaining the R&D expenditures especially in high-technology sectors even when facing a recession.

Keywords: R&D; Firm growth; Innovation; Generalized method of moments; Quantile regression (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (57)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:41:y:2012:i:6:p:1084-1092

DOI: 10.1016/j.respol.2012.03.017

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