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Endogenous Firm Heterogeneity, ICT and R&D Incentives

Daniel Cequera and Gordon Klein

No 08-126, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: Firm heterogeneity explains the productivity driven selection mechanism that determines aggregate productivity growth within industries. This paper empirically demonstrates that ICT has a robust impact on firm heterogeneity only when ICT is used intensively and jointly with specific ICT applications. ICT induced heterogeneity is shown to have a positive impact on the decision to invest in R&D personnel.

Keywords: Firm Heterogeneity; Information and Communication Technologies; Creative Destruction; R&D Incentives; Firm Level Data (search for similar items in EconPapers)
JEL-codes: D21 L25 O32 (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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