1,721,134 research outputs found
Economic Growth with Public Finance: A Theoretical Model for Equilibrium Dynamics and Analytic Solution
No full textThis work analyses the equilibrium dynamics of a growth model with public finance where two different allocations of public resources are considered, namely "institutional" spending and “traditional” core productive spending. Both components of government expenditure are complementary with private production. The model we propose simultaneously determines the optimal proportion of consumption, capital accumulation, taxation and composition of the two different public expenditures which maximize a representative household's lifetime utility in a centralized economy. The model supplies a closed-form solution. Moreover, with one restriction on the parameters (a = s) we fully determine the solution path for all variables included in the analysis and establish the conditions for balanced growth
Innovative activities and investment decision: evidence from European firms
No full textThis paper investigates the role of innovative activity and other micro determinants, on
firms’ investment behaviour. The empirical analysis is based on a large representative and
cross-country comparative sample of manufacturing firms across seven European countries
during the global financial crisis 2007–2009. It is argued that innovative activities, measured
either by an input variable (R&D) or by an output variable (innovative products sales),
may boost additional investment in equipment and machinery. Given the significant share
of firms which did not carry out any investment, a tobit procedure is adopted. Successively,
in order to account for the potential simultaneity between investment decision and innovation
activity variables, a seemingly unrelated regression equation methodology is applied.
The results reveal that both R&D and innovative sales positively affect investment decisions,
with the former having a stronger impact on investments, compared to the latter. The
analysis also suggests that, after checking for a firm’s characteristics, firms in Germany and
Spain are more likely to invest than those in France, Italy, and the UK
Does R&D spending boost tangible investment? An analysis on European firms
No full textThis article investigates the relationship between firm’s R&D intensity, expressed as R&D expenditure over sales, and investment intensity in tangible assets. It is commonly acknowledged that R&D requires additional physical investment to be implemented. R&D increases a firm’s productivity and return to tangible investments, thus, providing to the firm incentives to bear high tangible capital costs and to invest more. This represents a crucial issue for a firm’s growth, particularly considering the strong interaction between physical capital accumulation and technological progress. The analysis is based on a large sample of manufacturing firms across seven European countries in the period 2007–2009. Since the sub-sample of firms performing R&D might not be random, there may potentially be an endogeneity issue. The analysis also considers that firms may decide to spend on R&D and investment in physical capital simultaneously. The questions of both endogeneity and simultaneity are dealt with by employing an instrumental variable two-step procedure. We find a positive and significant impact of R&D intensity on firms’ tangible investment intensity. The econometric results highlight the importance of financial factors, particularly with respect to firms’ internal resources. Exposure to international trade has a negative impact on investment, possibly depending on the time-span of the sample used
External R&D Acquisition and Product Innovation
No full textThe outsourcing of R&D activities is considered an important way to acquire external technological information that can be integrated into a firm’s own knowledge endowment. Given the complex relationship between R&D partnerships and innovation performance, it becomes of paramount importance for scholars, managers and policy-makers to understand whether and how outsourcing benefits the firm.
This paper tries to assess the impact that external sources of R&D may have on product innovation, differentiating between R&D supplied by universities and other companies. The empirical analysis is based on a large and representative sample of European manufacturing companies. The analysis considers R&D an endogenous decision in investigating its effect on product innovation. An instrumental variable two-step
estimation method is employed to deal with this issue. The results suggest that R&D intensity, or the share of R&D acquired from external sources, has a positive and significant effect on product innovation.
Furthermore, we find evidence of an inverse U-shaped relationship between R&D outsourcing and innovation, meaning that on average, costs start to outweigh benefits as the R&D collaboration projects increase. We also estimate high returns from R&D acquired from universities on the probability to achieve product innovations, while having firms in the same group as research partners has the largest effect on innovative product sales. The results have straightforward implications for the practice of R&D managers.
In order to gain advantages from partnership in research, innovation managers need to jointly exploit these different types of collaboration activities and their potential synergies. Given that the innovative firms in the sample desire additional credit which actually they do not obtain, R&D managers should also be concerned with the financing sources firms have access to. Finally, the analysis suggests that managers ought to identify the appropriate level of external acquisition in order to fully benefit on innovation
Complementarities in R&D and Innovation Decisions An Enquiry on an Extensive Sample of Latin American Companies
No full textThis study uses an extensive sample of company data referring to seven Latin American countries to analyse the potential influence of simultaneity and heterogeneity in determining decisions to commit to R&D and innovation outputs. First, the analysis focuses on the decisions about spending on in-house and external research. Second, the outcomes of three different innovations: process, product, and organisational. Choices were considered simultaneously by employing a multivariate probit estimation model. In so doing, the enquiry considered the possible systematic interdependencies among the decisions. The results indicate that the two R&D decisions are interdependent. However, a different picture emerged in relation to innovation outputs, in which the correlations coefficients were small with unexpected signs. This may indicate a structural weakness of the technological production system in Latin America, wherein the synergies, complementarities, and complex relationships usually involved in the process of innovation are not fully developed
Endogenous Innovation and Export Performance in Firms
No full textWe investigated whether export activity is correlated with innovation in a large sample of European companies. We explicitly considered five types of innovation: a) process innovation; b) product innovation; c) process and product innovation; d) product innovation new to the firm; and e) product innovation new to the market. We considered innovation as endogenous and determined by R&D through a process characterized by the regional technological environment. Our analysis enabled us to propose an integrated model incorporating R&D, innovation, and export in a scheme of simultaneous decisions which considers their mutual correlations.
Econometric results showed that product and process innovation positively affect the export intensity of manufacturing firms in Europe. The results also indicated complementarity effects between process and product innovation. The average effect on export intensity from engaging in process innovation is larger than that found for product innovation, except in cases where the product is new to the market. When both types of innovation have been carried out, a larger effect results than that observed for product or process innovation alone. Furthermore, the average marginal effect on export intensity from innovation of any kind is highly positive and significant
External R&D and Product Innovation: Is Over-Outsourcing an Issue?
No full textThe acquisition of external R&D positively affects the creation of innovative products; however, as external R&D intensity and complexity increase, firms may face higher costs of coordination and control. Recent literature has found evidence of the R&D over-outsourcing problem analyzing single-country small samples of firms. Moreover, most research has overlooked the endogeneity problems that can arise with firms' decisions on R&D. We investigate the external R&D–product innovation association, controlling for different types of research sources in a large collection of firms in five European countries. We find that external R&D enhances innovation outcomes until a certain threshold; beyond this threshold, firms face over-outsourcing. Furthermore, R&D acquired from universities shows to be most effective in promoting product innovations, whereas R&D acquired from firms within the same group has a larger effect on the intensity of innovative product sales
Forms of extramural research acquisition and product innovation: Data from econometric estimations
No full textThis Data article provides a collection of Data and econo- metric estimates of the relationship between various forms of external research and Development (R&D) acquisition and product innovation. Specifically, the Data are elaborations on Eurostat (2015) and the EFIGE (2015) survey. Data relate to research acquired by external firms inside the group to which a company belongs, universities and research centres, and other companies. The Data presented here are additional in- formation and analysis to the article of Carboni and Medda [1] . Data derive from econometric applications on the in- formation contained in a survey of 13,621 European man- ufacturing firms. The econometric framework considers: ( 1 ) Potential non-linear effects of the age of firms on product innovation; ( 2 ) Geographical variation of innovative activity by the inclusion of 137 regional dummies (NUTS-2-level); ( 3 ) Intersectoral differences by the inclusion of 117 indus- trial dummies (3-digit NACE). We employ systems of equa- tions regressions to take simultaneity end endogeneity into account. For this purpose, the model identification is ac- complished through the use of a reduced form equation for R&D with two instrumental variables (IV) aimed at capturing regional technological environment. Specifically, we use an instrumental variable framework to compute the impact of external research on (1) the probability of implementing product innovations and (2) the market success of product innovations. The latter is measured by the share of total turnover of innovative products sales. Special focus is put on the potential role of the regional technological environ- ment. For the computations we used the cmp command in STATA, which builds upon the maximum simulated likeli- hood analysis. The models are also estimated using the frac- tional response technique to check the 0-100% bounded na- ture of this variable. The Data presented here can be useful for companies to better design R&D strategies aimed at im- proving firms’ organization, synergies, and growth. This may help strategic decision making, and a more efficient coordi- nation of the complex process of production. Data are also useful for policy makers for designing public R&D schemes, both at the national and at the European level. Finally, the Data represent a useful starting point for future research con- cerning the proprietary structure of the firm and the work- force, innovation and R&D, internationalization, finance, and market
Going Beyond Counting First Authors in Author Co-citation Analysis
Full text linkThe present study examines one of the fundamental aspects of author co-citation analysis (ACA) - the way co-citation
counts are defined. Co-citation counting provides the data on which all subsequent statistical analyses and mappings
are based, and we compare ACA results based on two different types of co-citation counting - the traditional type that
only counts the first one among a cited work's authors on the one hand and a non-traditional type that takes into
account the first 5 authors of a cited work on the other hand. Results indicate that the picture produced through this non-traditional author co-citation counting contains more coherent author groups and is therefore considerably clearer. However, this picture represents fewer specialties in the research field being studied than that produced through the traditional first-author co-citation counting when the same number of top-ranked authors is selected and analyzed. Reasons for these effects are discussed
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