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Non-linearities in the R&D-firm growth relationship: Evidence from a semiparametric location-scale regression approach

Author

Listed:
  • Drini Morina

    (Gottfried Wilhelm Leibniz University Hannover)

  • Henning Lucas

    (Gottfried Wilhelm Leibniz University Hannover)

  • Stefanie Heiden

    (Gottfried Wilhelm Leibniz University Hannover)

Abstract

Based on a generalized additive model for location and scale, this paper shows that there is no positive association between R&D and average firm growth rates in the short run, unless R&D efforts are extremely high. The growth rate variance, however, increases with smaller values of R&D intensity and the magnitude is more extreme.

Suggested Citation

  • Drini Morina & Henning Lucas & Stefanie Heiden, 2023. "Non-linearities in the R&D-firm growth relationship: Evidence from a semiparametric location-scale regression approach," Economics Bulletin, AccessEcon, vol. 43(2), pages 1155-1161.
    • Handle: RePEc:ebl:ecbull:eb-22-00752
    as

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    References listed on IDEAS

    as
    1. Simon N. Wood, 2013. "On p-values for smooth components of an extended generalized additive model," Biometrika, Biometrika Trust, vol. 100(1), pages 221-228.
    2. Hagedoorn, John & Cloodt, Myriam, 2003. "Measuring innovative performance: is there an advantage in using multiple indicators?," Research Policy, Elsevier, vol. 32(8), pages 1365-1379, September.
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    More about this item

    Keywords

    R&D; firm growth; generalized additive location-scale model; GAM;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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