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Endogenous Firm Heterogeneity, ICT and R&D Incentives

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Author Info

  • Cequera, Daniel
  • Klein, Gordon J.

Abstract

Firm heterogeneity explains the productivity driven selection mechanism that determines aggregate productivity growth within industries. This paper empirically demonstrates that ICT has a robust impact on firm heterogeneity only when ICT is used intensively and jointly with specific ICT applications. ICT induced heterogeneity is shown to have a positive impact on the decision to invest in R&D personnel. --

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File URL: http://econstor.eu/bitstream/10419/27609/1/dp08126.pdf
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Bibliographic Info

Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 08-126.

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Date of creation: 2008
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Handle: RePEc:zbw:zewdip:7516

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Related research

Keywords: Firm Heterogeneity; Information and Communication Technologies; Creative Destruction; R&D Incentives; Firm Level Data;

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Cited by:
  1. Bronwyn H. Hall & Francesca Lotti & Jacques Mairesse, 2013. "Evidence on the impact of R&D and ICT investments on innovation and productivity in Italian firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 22(3), pages 300-328, April.

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