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Is there a linear relationship between R&D intensity and growth? Empirical evidence of non-high-tech vs. high-tech SMEs

Listed author(s):
  • Nunes, Paulo Maçãs
  • Serrasqueiro, Zélia
  • Leitão, João

To investigate whether there is a similar relationship between R&D intensity and growth in high-tech and non-high-tech small and medium-sized enterprises (SMEs), we examine two samples of SMEs in manufacturing industries, applying the two-step estimation method. Our findings are that R&D intensity restricts the growth of high-tech SMEs at lower levels of R&D intensity and stimulates their growth at higher levels. However, R&D intensity restricts the growth of non-high-tech SMEs regardless of the level of R&D. The relationships obtained between other determinants considered in the literature and the growth of high-tech and non-high-tech SMEs allow us to conclude that (i) smaller, younger, non-high-tech SMEs grow more quickly than larger, older, non-high-tech SMEs, which does not occur in the case of high-tech SMEs; and (ii) financing restrictions are especially important in financing the growth of high-tech SMEs, compared with non-high-tech SMEs.

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File URL: http://www.sciencedirect.com/science/article/pii/S0048733311001685
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Article provided by Elsevier in its journal Research Policy.

Volume (Year): 41 (2012)
Issue (Month): 1 ()
Pages: 36-53

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Handle: RePEc:eee:respol:v:41:y:2012:i:1:p:36-53
DOI: 10.1016/j.respol.2011.08.011
Contact details of provider: Web page: http://www.elsevier.com/locate/respol

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