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R&D and productivity in Danish firms: some empirical evidence

Valdemar Smith (), Mogens Dilling-Hansen, Tor Eriksson () and Erik Madsen

Applied Economics, 2004, vol. 36, issue 16, 1797-1806

Abstract: The aim of the paper is to examine the relationship between R&D capital and productivity using microdata for Danish manufacturing firms. The influence of factors such as ownership, innovative characteristics and source of funding accounted for. The return to accumulated R&D capital is estimated to be in the neighbourhood of 9-12%, whereas the short-run effect of R&D is insignificant. Furthermore, the direct influence from foreign ownership, source of funding accounted for, innovative characteristics and ownership dispersion on productivity are analysed. However, none of the factors seem to have an impact on firm productivity. The same is the case for the indirect influence coming from interaction with accumulated R&D capital.

Date: 2004
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DOI: 10.1080/0003684042000227895

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