Evaluation of Relative R&D-led Growth with Specific Reference to Heterogeneous Time-varying R&D Decision: A Novel Approach
Evaluation of Relative R&D-led Growth with Specific Reference to Heterogeneous Time-varying R&D Decision: A Novel Approach
Author(s): Ömer Tuğsal DorukSubject(s): Business Economy / Management, Economic development, EU-Accession / EU-DEvelopment
Published by: Vysoká škola ekonomická v Praze
Keywords: R&D; firm growth; EU countries; time-varying R&D-led growth; dynamic time-varying difference in differences;
Summary/Abstract: The relationship between R&D expenditures and firm growth is examined for a cross-country firm-level dataset for the EU countries in the period from 1989 to 2019. A panel dynamic average treatment effect is estimated using a panel time-varying dynamic difference-in-differences model. The methodology can be counted as novel. The results show a positive and significant relationship between R&D and firm growth within the first five years of R&D investment in the 22 EU countries, over 700 firms and 30 years. The main novelty of the present study comes from examining the time-varying effect of R&D expenditures on firm growth for manufacturing firms in EU countries.
Journal: Prague Economic Papers
- Issue Year: 32/2023
- Issue No: 3
- Page Range: 273-291
- Page Count: 19
- Language: English