Does Innovation Encourage Investment in Fixed Capital?
AbstractThis paper presents an empirical investigation of the hypothesis that increased R&D expenditure by companies generates a subsequent increase in fixed capital investment both within the same companies and in the companies which they supply. We use an investment framework which involves modelling explicitly the expected present value returns to a marginal increment in the capital stock. This framework is directly suited to our purpose unlike the more standard Euler equation or Q models common in the literature. Our results indicate that R&D expenditure does indeed encourage investment in most industries and that there are no posibitive effects in the other direction. We have thus uncovered a part of the investment process but a more complete understanding awaits an improvement in our knowledge of the determinants of R&D.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0309.
Date of creation: Oct 1996
Date of revision:
Contact details of provider:
Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Claessens, Stijn & Laeven, Luc, 2002.
"Financial Development, Property Rights and Growth,"
CEPR Discussion Papers
3295, C.E.P.R. Discussion Papers.
- Stijn Claessens & Luc Laeven, 2003. "Financial Development, Property Rights, and Growth," Journal of Finance, American Finance Association, vol. 58(6), pages 2401-2436, December.
- Claessens, Stijn & Laeven, Luc, 2002. "Financial development, property rights, and growth," Policy Research Working Paper Series 2924, The World Bank.
- Courvisanos,Jerry, 2000. "The Dynamics of Innovation and Investment, with application to Australia 1984 - 1998," Research Memorandum 003, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Stephen Bond & Dietmar Harhoff & John Van Reenen, 2003.
"Investment, R&D and Financial Constraints in Britain and Germany,"
CEP Discussion Papers
dp0595, Centre for Economic Performance, LSE.
- Stephen BOND & Dietmar HARHOFF & John VAN REENEN, 2005. "Investment, R&D and Financial Constraints in Britain and Germany," Annales d'Economie et de Statistique, ENSAE, issue 79-80, pages 433-460.
- Stephen Bond & Dietmar Harhoff & John Van Reenen, 2010. "Investment, R&D and Financial Constraints in Britain and Germany," NBER Chapters, in: Contributions in Memory of Zvi Griliches, pages 433-460 National Bureau of Economic Research, Inc.
- Steve Bond & Dietmar Harhoff & John Van Reenen, 1999. "Investment, R&D and financial constraints in Britain and Germany," IFS Working Papers W99/05, Institute for Fiscal Studies.
- Stephen Bond & Dietmar Harhoff & John Van Reenen, 2003. "Investment, R&D and financial constraints in Britain and Germany," LSE Research Online Documents on Economics 771, London School of Economics and Political Science, LSE Library.
- Alessandra Del Boca & Marzio Galeotti & Paola Rota, 2003.
"Non-convexities in the Adjustment of Different Capital Inputs: A Firm-level Investigation,"
2003.35, Fondazione Eni Enrico Mattei.
- Del Boca, Alessandra & Galeotti, Marzio & Rota, Paola, 2008. "Non-convexities in the adjustment of different capital inputs: A firm-level investigation," European Economic Review, Elsevier, vol. 52(2), pages 315-337, February.
- Alessandra Del Boca & Marzio Galeotti & Paola Rota, 2002. "Non-convexities in the adjustment of different capital inputs: a firm-level investigation," Working Papers 0203, University of Bergamo, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.