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Effects of R&D spending on productivity of the Russian firms: does technological intensity matter?

Author

Listed:
  • Oleg Mariev

    (Ural Federal University
    Institute of Economics of the Ural Branch of the RAS)

  • Karina Nagieva

    (Ural Federal University)

  • Andrey Pushkarev

    (Ural Federal University)

  • Natalia Davidson

    (Ural Federal University)

  • Kazi Sohag

    (Ural Federal University)

Abstract

We investigate the impact of R&D spending on firm productivity through innovation and human capital channels. To this end, we apply the structural CDM model to analyse a comprehensive Russian-firm level data obtained from the Business Environment and Enterprise Performance Survey supplemented with the Regional Integral Index of Innovation Development. We consider internal and external human capital as well as different levels of firms’ technological intensity. Our first stage of analysis demonstrates that dissatisfaction with employees’ specialisation, import of intermediate products, and firm’s association with larger enterprise augment total R&D expenditures. The second stage of analysis reveals that R&D expenditures, cooperation with universities, personnel training, and regional innovations spur the firm’s innovative sales. Finally, the last stage of our analysis affirms our proposition that innovative sales, capital and labour costs per employee accelerate productivity. Our estimation is robust considering the regional differences. Our empirical findings provide several policy implications.

Suggested Citation

  • Oleg Mariev & Karina Nagieva & Andrey Pushkarev & Natalia Davidson & Kazi Sohag, 2022. "Effects of R&D spending on productivity of the Russian firms: does technological intensity matter?," Empirical Economics, Springer, vol. 62(5), pages 2619-2643, May.
    • Handle: RePEc:spr:empeco:v:62:y:2022:i:5:d:10.1007_s00181-021-02095-3
    DOI: 10.1007/s00181-021-02095-3
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