Effects of R&D spending on Innovation by Irish and Foreign-owned Businesses
AbstractThis paper estimates the private returns to four different kinds of R&D spending on the probability of Irish and foreign-owned businesses engaging in product, process and organizational innovation. By providing econometric analysis of nearly 2000 businesses in the Community Innovation Survey: 2004 to 2006, it makes an important contribution to our understanding of the effects of Irish innovation policy, which has incentivized businesses to spend on R&D in Ireland. The main findings are that Irish owned businesses are significantly more likely than foreign-owned to introduce new products as a result of creative R&D work undertaken. Foreign-owned businesses, which spend nearly 6 times more per worker on R&D than Irish-owned, enjoy very high returns mostly from the purchase or licence of patents. This reflects a fundamental difference in the innovation activities of these businesses, which is critical for policymakers’ understanding of the Irish innovation system.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 44579.
Date of creation: 2013
Date of revision:
Innovation Policy; Innovation Output; Research & Development;
Find related papers by JEL classification:
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- R19 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-03-16 (All new papers)
- NEP-CSE-2013-03-16 (Economics of Strategic Management)
- NEP-INO-2013-03-16 (Innovation)
- NEP-KNM-2013-03-16 (Knowledge Management & Knowledge Economy)
- NEP-SBM-2013-03-16 (Small Business Management)
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