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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

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  • Nunes, Paulo Maçãs
  • Serrasqueiro, Zélia
  • Leitão, João

Abstract

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.

Suggested Citation

  • Nunes, Paulo Maçãs & Serrasqueiro, Zélia & Leitão, João, 2012. "Is there a linear relationship between R&D intensity and growth? Empirical evidence of non-high-tech vs. high-tech SMEs," Research Policy, Elsevier, vol. 41(1), pages 36-53.
  • Handle: RePEc:eee:respol:v:41:y:2012:i:1:p:36-53
    DOI: 10.1016/j.respol.2011.08.011
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    References listed on IDEAS

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    Cited by:

    1. Haytem Ahmed Troug & Rashid Sbia, 2015. "Testing for the Presence of Asymmetric Information in the Oil Market: A Vector Autoregression Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 5(3), pages 753-762.
    2. Stefano Denicolai & Birgit Hagen & Alessia Pisoni, 2015. "Be international or be innovative? Be both? The role of the entrepreneurial profile," Journal of International Entrepreneurship, Springer, vol. 13(4), pages 390-417, December.
    3. repec:bla:irvfin:v:17:y:2017:i:1:p:3-42 is not listed on IDEAS
    4. repec:taf:tprsxx:v:55:y:2017:i:17:p:5168-5182 is not listed on IDEAS
    5. Cuma BOZKURT, 2015. "R&D Expenditures and Economic Growth Relationship in Turkey," International Journal of Economics and Financial Issues, Econjournals, vol. 5(1), pages 188-198.
    6. Alicia Rodríguez & María Jesús Nieto, 2016. "Does R&D offshoring lead to SME growth? Different governance modes and the mediating role of innovation," Strategic Management Journal, Wiley Blackwell, vol. 37(8), pages 1734-1753, August.
    7. Stefano Bianchini & Federico Tamagni & Gabriele Pellegrino, 2016. "Innovation strategies and firm growth," Working Papers 2016/10, Institut d'Economia de Barcelona (IEB).
    8. Coad, Alex & Segarra, Agustí & Teruel, Mercedes, 2016. "Innovation and firm growth: Does firm age play a role?," Research Policy, Elsevier, vol. 45(2), pages 387-400.
    9. Taoufik Elkemali & Aymen Ben Rejeb, 2015. "R&D Intensity and Financing Decisions: Evidence from European Firms," Economics Bulletin, AccessEcon, vol. 35(2), pages 1042-1055.
    10. repec:eee:respol:v:46:y:2017:i:8:p:1519-1530 is not listed on IDEAS
    11. Mate-Sanchez-Val, Mariluz & Harris, Richard, 2014. "Differential empirical innovation factors for Spain and the UK," Research Policy, Elsevier, vol. 43(2), pages 451-463.
    12. repec:kap:sbusec:v:48:y:2017:i:3:d:10.1007_s11187-016-9803-0 is not listed on IDEAS
    13. Rosa Jordá-Borrell & Francisca Ruiz-Rodríguez & Reyes González-Relaño, 2015. "Factors and taxonomy of technology purchase (TP) by internationalized innovative companies in peripheral European regions," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 139-174, November.
    14. Dario Guarascio & Federico Tamagni, 2016. "Persistence of innovation and patterns of firm growth," LEM Papers Series 2016/31, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

    More about this item

    Keywords

    High-tech SMEs; Non-high-tech SMEs; R&D intensity; Two-step estimation;

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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