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Business R&D Expenditure in the ICT Sector: Effects on Business Performance Indicators

In: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Rovinj, Croatia, 12-14 September 2019

Author

Listed:
  • Huňady, Ján
  • Pisar, Peter
  • Durcekova, Ina

Abstract

Firms in information and communication (ICT) sector are often considered as an important element of business innovation performance in the economy. This paper is focused on examining their share on innovation and total research and development (R&D) expenditure in selected European countries. Moreover, our goal is to test the potential effect of R&D expenditure on selected business performance indicators. We used panel macro-level data from 24 countries during the years 2008- 2016. Based on the results of panel regression analysis we found empirical evidence for the positive effect of R&D expenditure on value-added and apparent labour productivity in the ICT sector. This fact could be to some extent attributed to the innovation of products and processes. The highest share of business R&D expenditure in ICT is present in Nordic countries such as Island, Norway and Finland. Firms in ICT appear to be more above-average innovative and represent a significant share of total business R&D expenditure.

Suggested Citation

  • Huňady, Ján & Pisar, Peter & Durcekova, Ina, 2019. "Business R&D Expenditure in the ICT Sector: Effects on Business Performance Indicators," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2019), Rovinj, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Rovinj, Croatia, 12-14 September 2019, pages 519-530, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
    • Handle: RePEc:zbw:entr19:207714
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    References listed on IDEAS

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    Cited by:

    1. Hunady, Jan & Pisar, Peter, 2020. "Business Spending on Research and Development and its Relationship to Invention and Innovation," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2020), Virtual Conference, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Virtual Conference, 10-12 September 2020, pages 542-552, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.

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    More about this item

    Keywords

    business R&D expenditure; business innovation; ICT sector; business performance; financial indicators;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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