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The medium-term effect of R&D on firm growth

  • Capasso M.
  • Treibich T.G.
  • Verspagen Bart


This study analyses the medium-term effect of RD expenditure on firm employment growth. Four cross-sectional waves of an innovation survey conducted in the Netherlands have been used to evaluate the effect on firm growth in the five years following the investment. Panel data fixed effect techniques, also allowing for selection bias corrections, indicate a positive influence of RD on growth. Limited dependent variable models have been used throughout the whole analysis to consider explicitly the cases of firms exiting the market in the analysed medium term.

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Paper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 001.

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Date of creation: 2014
Date of revision:
Handle: RePEc:unm:unumer:2014001
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