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The complementarity effect of research and development on firm productivity

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  • Andr�s Barge-Gil
  • Alberto L�pez

Abstract

Returns to investment in research and development (R&D) are a subject of considerable interest in the literature on economics of innovation. However, a drawback of this literature is that R&D is mostly treated as a homogeneous activity. This article analyses the differentiated effect of research and development on productivity and tests the existence of complementarity between these activities. We find evidence supporting the existence of a direct effect of both innovation activities. Most interestingly, our results suggest that there is complementarity between research and development in determining productivity.

Suggested Citation

  • Andr�s Barge-Gil & Alberto L�pez, 2013. "The complementarity effect of research and development on firm productivity," Applied Economics Letters, Taylor & Francis Journals, vol. 20(15), pages 1426-1430, October.
    • Handle: RePEc:taf:apeclt:v:20:y:2013:i:15:p:1426-1430
    DOI: 10.1080/13504851.2013.815307
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    References listed on IDEAS

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    Cited by:

    1. Carolina Pasciaroni, 2025. "R&D Cooperation: Direct and Indirect Effect and Complementary. An Oaxaca-Blinder Decomposition for a Developing Country," Schmalenbach Journal of Business Research, Springer, vol. 77(4), pages 847-884, December.
    2. Barge-Gil, Andrés & López, Alberto, 2014. "R&D determinants: Accounting for the differences between research and development," Research Policy, Elsevier, vol. 43(9), pages 1634-1648.

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