6533b834fe1ef96bd129d3f5
RESEARCH PRODUCT
The path of R&D efficiency over time
Amparo SanchisPilar BeneitoMaría E. Rochina-barrachinasubject
Economics and EconometricsPhysical capitalProduct innovationStrategy and ManagementIndustrial relationsEconomics Econometrics and Finance (miscellaneous)Path (graph theory)EconometricsEconomicsManufacturing firmsProduct (category theory)D optimalIndustrial organizationdescription
Abstract In this paper we investigate the pattern of R&D efficiency in terms of the number of product innovations achieved by firms over time. Using a panel dataset of Spanish manufacturing firms for the period 1990–2006, we follow the innovative performance of R&D active firms and observe that innovation rates change over firms' R&D histories. To explain these facts we propose a model that explicitly acknowledges the twofold composition of firms' R&D expenditures, comprising spending on both physical capital for R&D projects and payments to researchers. We regard this latter component of R&D as a source for dynamic returns to firms' R&D investments. Consequently firms' innovation outcomes clearly depend on how long they have been investing in R&D and also on whether there have been any interruptions in the temporal sequence of R&D activities. Our results suggest that R&D activities exhibit dynamic returns that are positive but at a decreasing rate, and that interruptions in R&D engagement reduce R&D efficiency.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2015-09-01 | International Journal of Industrial Organization |