The complementarity effect of research and development on firm productivity

Andrés Barge-Gil and Alberto L�pez
Authors registered in the RePEc Author Service: Alberto López

Applied Economics Letters, 2013, vol. 20, issue 15, 1426-1430

Abstract: Returns to investment in research and development (R&D) are a subject of considerable interest in the literature on economics of innovation. However, a drawback of this literature is that R&D is mostly treated as a homogeneous activity. This article analyses the differentiated effect of research and development on productivity and tests the existence of complementarity between these activities. We find evidence supporting the existence of a direct effect of both innovation activities. Most interestingly, our results suggest that there is complementarity between research and development in determining productivity.

Date: 2013
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DOI: 10.1080/13504851.2013.815307

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