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Variations in the effect of R&D investment on firm productivity: UK evidence

Variations in the effect of R&D investment on firm productivity: UK evidence

Solomon, Edna M., Ugur, Mehmet ORCID: 0000-0003-3891-3641, Guidi, Francesco and Trushin, Esref (2015) Variations in the effect of R&D investment on firm productivity: UK evidence. [Working Paper]

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Abstract

Our research provides novel findings about the heterogenous effects of R&D on UK firm-level productivity. In our comprehensive analysis, the effect of R&D on UK productivity is broken down by type of R&D, sources of R&D funding, sector and Pavitt class. Our sample consists of a panel of 10,920 firms from 1998 to 2012. We find that R&D has a positive and significant effect on labour productivity in the UK. However, there is considerable heterogeneity in the results. The output elasticity of R&D capital is higher for firms in less competitive sectors and in more R&D intensive sectors. Finally, we find that applied R&D, experimental R&D, intramural R&D and R&D from private sources tend to have higher productivity impacts compared with basic R&D, extramural R&D or publicly-funded R&D.

Item Type: Working Paper
Uncontrolled Keywords: R&D; knowledge capital; productivity; meta-analysis;
Subjects: H Social Sciences > H Social Sciences (General)
Faculty / Department / Research Group: Faculty of Business > Greenwich Political Economy Research Centre (GPERC)
Related URLs:
Last Modified: 07 Apr 2016 14:47
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
URI: http://gala.gre.ac.uk/id/eprint/14081

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