EconPapers    
Economics at your fingertips  
 

Is Corporate R&D Investment in High-Tech Sectors More Effective?

Raquel Ortega-Argiles (), Mariacristina Piva (), Lesley Potters and Marco Vivarelli ()

No dises0955, DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE)

Abstract: This paper discusses the link between R&D and productivity across the European industrial and service sectors. The empirical analysis is based on both the European sectoral OECD data and on a unique micro longitudinal database consisting of 532 top European R&D investors. The main conclusions are as follows. First, the R&D stock has a significant positive impact on labour productivity; this general result is largely consistent with previous literature in terms of the sign, the significance and the magnitude of the estimated coefficients. More interestingly, both at sectoral and firm levels the R&D coefficient increases monotonically (both in significance and magnitude) when we move from the low-tech to the medium and high-tech sectors. This outcome means that corporate R&D investment is more effective in the high-tech sectors and this may need to be taken into account when designing policy instruments (subsidies, fiscal incentives, etc.) in support of private R&D. However, R&D investment is not the sole source of productivity gains; technological change embodied in gross investment is of comparable importance on aggregate and is the main determinant of productivity increase in the low-tech sectors. Hence, an economic policy aiming to increase productivity in the low-tech sectors should support overall capital formation.

Keywords: R&D; productivity; high-tech sectors; innovation; industrial policy (search for similar items in EconPapers)
JEL-codes: O33 (search for similar items in EconPapers)
Date: 2009-07
New Economics Papers: this item is included in nep-eec, nep-eff, nep-ino, nep-sbm and nep-tid
References: Add references at CitEc
Citations: View citations in EconPapers (36) Track citations by RSS feed

Downloads: (external link)
http://www.unicatt.it/dipartimenti/DISES/allegati/dises0955.pdf First version, aaaa (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.unicatt.it/dipartimenti/DISES/allegati/dises0955.pdf [301 MOVED PERMANET]--> https://www.unicatt.it/dipartimenti/DISES/allegati/dises0955.pdf)

Related works:
Journal Article: IS CORPORATE R&D INVESTMENT IN HIGH‐TECH SECTORS MORE EFFECTIVE? (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ctc:serie2:dises0955

Access Statistics for this paper

More papers in DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) Contact information at EDIRC.
Bibliographic data for series maintained by Francesco Timpano ().

 
Page updated 2021-10-17
Handle: RePEc:ctc:serie2:dises0955