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Research-Based Companies Perform Better

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  • Alexander Eickelpasch

Abstract

The past ten years have seen an expansion in industrial research. There has been a significant increase in the number of research-based companies, as well as in employment in research and development, and in expenditure in this area. Growth has been observed predominantly in companies in less research-intensive sectors and in small and medium-sized enterprises. Consequently, over the last decade, industrial research in Germany has become more widespread. There has been steady growth in the contribution made by research-based companies to total manufacturing output and to employment. Moreover, these companies are considerably more efficient than non-research-based companies-in terms of per capita productivity-and have increased their lead over the course of time. Political support may have also been a contributing factor to the expansion of research and development, particularly in medium-sized industrial enterprises.

Suggested Citation

  • Alexander Eickelpasch, 2012. "Research-Based Companies Perform Better," DIW Economic Bulletin, DIW Berlin, German Institute for Economic Research, vol. 2(10), pages 3-14.
  • Handle: RePEc:diw:diwdeb:2012-10-1
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    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.409181.de/diw_econ_bull_2012-10_1.pdf
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    Cited by:

    1. Alexander Eickelpasch, 2014. "R&D Behavior of German Manufacturing Companies during the 2008/09 Recession," Discussion Papers of DIW Berlin 1357, DIW Berlin, German Institute for Economic Research.

    More about this item

    Keywords

    research and development; manufacturing; labor productivity;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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