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Research, development, and firm growth. Empirical evidence from European top R&D spending firms

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  • García-Manjón, Juan V.
  • Romero-Merino, M. Elena
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    Abstract

    Following recent literature, we present a model of endogenous firm growth with R&D investment as one of the main mechanisms of growth. Our study evidences a positive effect of R&D intensity on the sales growth by using OLS, quantile regressions, and GMM system estimators for a sample of 754 European firms for the 2003–2007 period. We also find this association is more intense in high-growth firms and is especially significant when referring to high-technology sectors. This paper gives empirical support to those recommendations from policy makers and business leaders for maintaining the R&D expenditures especially in high-technology sectors even when facing a recession.

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    Bibliographic Info

    Article provided by Elsevier in its journal Research Policy.

    Volume (Year): 41 (2012)
    Issue (Month): 6 ()
    Pages: 1084-1092

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    Handle: RePEc:eee:respol:v:41:y:2012:i:6:p:1084-1092

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

    Related research

    Keywords: R&D; Firm growth; Innovation; Generalized method of moments; Quantile regression;

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