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Quantifying heterogeneity in the relationship between R&D intensity and growth at innovative Japanese firms: A quantile regression approach

Author

Listed:
  • Besstremyannaya, Galina

    (HSE University, Моscow;)

  • Dasher, Richard

    (Stanford University, Stanford, US)

  • Golovan, Sergei

    (New Economic School, Moscow)

Abstract

This paper focuses on innovative manufacturing firms in Japan in 2009–2020 and evaluates differences in the relationship between R&D intensity and firm growth. We use a longitudinal version of the conditional quantile regression model to estimate the augmented Gibrat’s law equation for each of four innovative industries: chemicals and allied products; electronic and other electrical equipment; industrial and commercial machinery and computer equipment; and transportation equipment. The analysis reveals statistical differences in estimated coefficients for R&D intensity across low, median and high-growth firms within each industry and across pairs of industries. The results imply the presence of different patterns of R&D effectiveness which are discussed in the light of R&D management drawing on the experience of Sony and other fast-growing Japanese electronics firms. We also discover heterogeneity in the impact on growth of the age and size of firms.

Suggested Citation

  • Besstremyannaya, Galina & Dasher, Richard & Golovan, Sergei, 2022. "Quantifying heterogeneity in the relationship between R&D intensity and growth at innovative Japanese firms: A quantile regression approach," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 67, pages 27-45.
  • Handle: RePEc:ris:apltrx:0451
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    quantile regression; panel data; firm growth; innovation; R&D intensity.;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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