Differences in business R&D intensity across OECD countries: the role of size-dependent regulation

Jieun Chang and Youngho Kang

Applied Economics Letters, 2018, vol. 25, issue 7, 509-512

Abstract: We analyse the impact of size-dependent regulation in the labour market on business R&D intensity for 20 OECD countries spanning the periods 2002–2011. Using a difference-in-differences approach, we find that stricter size-dependent regulation leads firms with more than 50 employees to significantly reduce their R&D intensity. This finding implies that size-dependent regulation induces a distortion in the reallocation of R&D-related resources.

Date: 2018
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DOI: 10.1080/13504851.2017.1340566

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