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Is there a linear relationship between R&D intensity and growth? Empirical evidence of non-high-tech vs. high-tech SMEs

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Author Info

  • Nunes, Paulo Maçãs
  • Serrasqueiro, Zélia
  • Leitão, João

Abstract

To investigate whether there is a similar relationship between R&D intensity and growth in high-tech and non-high-tech small and medium-sized enterprises (SMEs), we examine two samples of SMEs in manufacturing industries, applying the two-step estimation method. Our findings are that R&D intensity restricts the growth of high-tech SMEs at lower levels of R&D intensity and stimulates their growth at higher levels. However, R&D intensity restricts the growth of non-high-tech SMEs regardless of the level of R&D. The relationships obtained between other determinants considered in the literature and the growth of high-tech and non-high-tech SMEs allow us to conclude that (i) smaller, younger, non-high-tech SMEs grow more quickly than larger, older, non-high-tech SMEs, which does not occur in the case of high-tech SMEs; and (ii) financing restrictions are especially important in financing the growth of high-tech SMEs, compared with non-high-tech SMEs.

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 41 (2012)
Issue (Month): 1 ()
Pages: 36-53

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Handle: RePEc:eee:respol:v:41:y:2012:i:1:p:36-53

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Web page: http://www.elsevier.com/locate/respol

Related research

Keywords: High-tech SMEs; Non-high-tech SMEs; R&D intensity; Two-step estimation;

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References

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Cited by:
  1. Mate-Sanchez-Val, Mariluz & Harris, Richard, 2014. "Differential empirical innovation factors for Spain and the UK," Research Policy, Elsevier, vol. 43(2), pages 451-463.
  2. Coad, Alex & Segarra Blasco, Agustí, 1958- & Teruel, Mercedes, 2013. "Innovation and firm growth: Does firm age play a role?," Working Papers 2072/211886, Universitat Rovira i Virgili, Department of Economics.

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