Investigation of ICT Firms' Decisions on R&D Investment
AbstractThe formulation of a macroeconomic model applied to the analysis of EU Research and Development (R&D) funding strategies in Information and Communication Technology (ICT) under the PREDICT 2 project stipulates a specification of the transmission mechanism of R&D funding policy on firms' R&D expenditures. To enlighten the understanding of ICT firms' investment decisions, the effect of various firm characteristics on firms' R&D activities is analysed on a representative sample of ICT sector firms in 16 EU member countries. The analysis covers two aspects of the firms' R&D activity. Firstly, R&D engagement characterising those firms which undertake in-house R&D projects on a continuous basis, and secondly, R&D expenditure measured as the firms' in-house expenditure on R&D projects per employee. The report finds that reception of public funding is positively related to ICT firms' R&D activity. The relation between public funding and firms' R&D activity is found to depend on funding sources. The results also show that national and international diffusion of knowledge through firms' cooperation with other enterprises and through international trade plays an important role for firms R&D activity. Finally, the results suggest that substantial differences exist in firms' R&D activity across countries and sectors.
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Bibliographic InfoPaper provided by Institute for Prospective and Technological Studies, Joint Research Centre in its series JRC-IPTS Working Papers with number JRC85346.
Date of creation: Dec 2013
Date of revision:
ICT industry; Research and Development; Europe 2020; Digital Agenda for Europe;
Find related papers by JEL classification:
- C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-12-29 (All new papers)
- NEP-CSE-2013-12-29 (Economics of Strategic Management)
- NEP-ICT-2013-12-29 (Information & Communication Technologies)
- NEP-INO-2013-12-29 (Innovation)
- NEP-KNM-2013-12-29 (Knowledge Management & Knowledge Economy)
- NEP-PPM-2013-12-29 (Project, Program & Portfolio Management)
- NEP-SBM-2013-12-29 (Small Business Management)
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