Do country or firm-specific factors matter more to R&D spending in firms?
| Autor: | Kartick Gupta, Rajabrata Banerjee |
|---|---|
| Přispěvatelé: | Banerjee, Rajabrata, Gupta, Kartick |
| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: |
Economics and Econometrics
050208 finance Cross country R&D Financial economics 05 social sciences Foreign direct investment globalisation Globalization Host country Multiple time dimensions Capital (economics) 0502 economics and business Economics cross-country 050207 economics Explanatory power Finance |
| Popis: | To what extent can firm, industry- and country-level factors explain firm-level R&D spending? Using a comprehensive dataset, which consists of 14,420 unique firms covering 42 countries and spanning 1981–2013, we examine this question by capturing multiple dimensions of the market and institutional characteristics. Our findings suggest that firm, industry- and country-level determinants jointly have the maximum explanatory power. More importantly, firm- and industry-level determinants have higher explanatory power than country-level determinants. We also show that the effect is similar for countries with weaker and stronger institutional scores related to R&D and for industries that are R&D intensive. These results are robust to adopting alternative empirical specifications of R&D intensity and correcting for missing R&D values. Our study has strong policy implications that show when international firms are investing in R&D related to FDI, they need to focus more on their own organisation and capital structures in the host country based on how the project is managed internally. Refereed/Peer-reviewed |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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