 The Role of Time in Assessing the Economic Effects of R&DMario Kafouros and Chengqi Wang Industry and Innovation, 2008, vol. 15, issue 3, 233-251 Abstract: This study investigates the impacts of R&D on firm performance. It extends previous research by constructing alternative stocks of R&D-Capital that take into account that time plays an important role in assessing the pay-off of industrial research. The results show that even when we employed R&D-Capitals that placed more emphasis on the industrial research that had been undertaken 7 years ago, the effects of R&D were very (statistically) significant and relatively high, thereby suggesting that the life of R&D (on average) tends to be long. The results however, vary across organizations depending on both firm size and the technological opportunities that a company faces. It appears that the depreciation rate of R&D investments is higher in the case of technologically sophisticated firms. In contrast, strategic investments in industrial research generate a relatively constant effect on the performance of other firms, supporting the notion that the corresponding returns for such firms decay slowly. Keywords: Research and development (R&D); time lag; performance; innovation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:indinn:v:15:y:2008:i:3:p:233-251 Ordering information: This journal article can be ordered from DOI: 10.1080/13662710802041638 Access Statistics for this article Industry and Innovation is currently edited by Associate Professor Mark Lorenzen More articles in Industry and Innovation from Taylor & Francis Journals |
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