1,058
Views
25
CrossRef citations to date
0
Altmetric
Original Articles

Firm growth and R&D investment: SVAR evidence from the world’s top R&D investors

ORCID Icon &

References

  • Achtenhagen, L., L. Naldi, and L. Melin. 2010. “‘Business Growth’-Do Practitioners and Scholars Really Talk about the Same Thing?” Entrepreneurship Theory and Practice 34 (2): 289–316.10.1111/(ISSN)1540-6520
  • Arrighetti, A., F. Landini, and A. Lasagni. 2015. “Intangible Asset Dynamics and Firm Behaviour.” Industry and Innovation 22 (5): 402–422.10.1080/13662716.2015.1064256
  • Baum, C. F., M. Caglayan, and O. Talavera. 2016. “R&D Expenditures and Geographical Sales Diversification.” The Manchester School 84 (2): 197–221.10.1111/manc.12092
  • Bettis, R., A. Gambardella, C. Helfat, and W. Mitchell. 2014. “Quantitative Empirical Analysis in Strategic Management.” Strategic Management Journal 35 (7): 949–953.10.1002/smj.2014.35.issue-7
  • Blundell, R., R. Griffiths, and J. Van Reenen. 1999. “Market Share, Market Value and Innovation in a Panel of British Manufacturing Firms.” Review of Economic Studies 66 (3): 529–554.10.1111/roes.1999.66.issue-3
  • Bogliacino, F., and M. Lucchese. 2016. “Endogenous Skill Biased Technical Change: Testing for Demand Pull Effect.” Industrial and Corporate Change 25: 227–243.10.1093/icc/dtv010
  • Bogliacino, F., and M. Vivarelli. 2012. “The Job Creation Effect of R&D Expenditure.” Australian Economic Papers 51 (2): 96–113.10.1111/aepa.2012.51.issue-2
  • Bogliacino, F., M. Piva, and M. Vivarelli. 2012. “R&D and Employment: An Application of the LSDVC Estimator Using European Data.” Economics Letters 116: 56–59.10.1016/j.econlet.2012.01.010
  • Bottazzi, G., and A. Secchi. 2006. “Explaining the Distribution of Firm Growth Rates.” The RAND Journal of Economics 37 (2): 235–256.10.1111/(ISSN)1756-2171
  • Brenner, T., and M. Duschl. 2015. “Causal Dynamic Effects in Regional Systems of Technological Activities: A SVAR Approach.” The Annals of Regional Science 55 (1): 103–130.10.1007/s00168-015-0678-9
  • Brenner, T., M. Capasso, M. Duschl, K. Frenken, and T. Treibich. 2018. “Causal Relations between Knowledge-Intensive Business Services and Regional Employment Growth.” Regional Studies 52 (2): 172–183. doi:10.1080/00343404.2016.1265104.
  • Breschi, S., F. Malerba, and L. Orsenigo. 2000. “Technological Regimes and Schumpeterian Patterns of Innovation.” The Economic Journal 110: 388–410.10.1111/ecoj.2000.110.issue-463
  • Carboni, O. A., and G. Medda. 2018. “R&D, Export and Investment Decision: Evidence from European Firms.” Applied Economics 50 (2): 187–201.10.1080/00036846.2017.1332747
  • Cho, H. J., and V. Pucik. 2005. “Relationship between Innovativeness, Quality, Growth, Profitability, and Market Value.” Strategic Management Journal 26 (6): 555–575.10.1002/(ISSN)1097-0266
  • Cincera, M., and J. Ravet. 2010. “Financing Constraints and R&D Investments of Large Corporations in Europe and the US.” Science and Public Policy 37 (6): 455–466.10.3152/030234210X508642
  • Ciriaci, D., P. Moncada-Paternò-Castello, and P. Voigt. 2016. “Innovation and Job Creation: A Sustainable Relation?” Eurasian Business Review 6: 189–213.10.1007/s40821-015-0031-3
  • Coad, A. 2009. The Growth of Firms: A Survey of Theories and Empirical Evidence. Cheltenham, UK and Northampton, MA, USA: Edward Elgar.10.4337/9781848449107
  • Coad, A., and M. Binder. 2014. “Causal Linkages between Work and Life Satisfaction and Their Determinants in a Structural VAR Approach.” Economics Letters 124: 263–268.10.1016/j.econlet.2014.05.021
  • Coad, A., and R. Rao. 2008. “Innovation and Firm Growth in High-Tech Sectors: A Quantile Regression Approach.” Research Policy 37 (4): 663–648.
  • Coad, A., and R. Rao. 2010. “Firm Growth and R&D Expenditure.” Economics of Innovation and New Technology 19 (2): 127–145.10.1080/10438590802472531
  • Coad, A., M. Cowling, and J. Siepel. 2017. “Growth Processes of High-Growth Firms as a Four-Dimensional Chicken and Egg.” Industrial and Corporate Change 26 (4): 537–554. doi:10.1093/icc/dtw040.
  • Delmar, F. 1997. “Measuring Growth: Methodological Considerations and Empirical Results.” In Entrepreneurship and SME Research: On Its Way to the Next Millennium, edited by R. Donckels and A. Miettinen, 190–216. Aldershot, VA: Avebury.
  • Di Stefano, G., A. Gambardella, and G. Verona. 2012. “Technology Push and Demand Pull Perspectives in Innovation Studies: Current Findings and Future Research Directions.” Research Policy 41 (8): 1283–1295.10.1016/j.respol.2012.03.021
  • Dosi, G. 1988. “Sources, Procedures, and Microeconomic Effects of Innovation.” Journal of Economic Literature 26 (3): 1120–1171.
  • Dosi, G., and R. R. Nelson. 2013. “The Evolution of Technologies: An Assessment of the State-of-the-Art.” Eurasian Business Review 3: 3–46.
  • Duschl M., and T. Brenner. (2013). “Growth Dynamics in Regional Systems of Technological Activities.” Working Papers on Innovation and Space, University of Marburg.
  • European Commission. 2015. “A Single Market Strategy for Europe - Analysis and Evidence.” http://ec.europa.eu/growth/single-market/index_en.htm.
  • García-Manjón, J. V., and M. E. Romero-Merino. 2012. “Research, Development, and Firm Growth. Empirical Evidence from European Top R&D Spending Firms.” Research Policy 41 (6): 1084–1092.10.1016/j.respol.2012.03.017
  • García-Quevedo, J., G. Pellegrino, and M. Vivarelli. 2014. “R&D Drivers and Age: Are Young Firms Different?” Research Policy 43 (9): 1544–1556.10.1016/j.respol.2014.04.003
  • Garnsey, E., E. Stam, and P. Heffernan. 2006. “New Firm Growth: Exploring Processes and Paths.” Industry and Innovation 13 (1): 1–20.10.1080/13662710500513367
  • Geroski, P. A., S. J. Machin, and C. F. Walters. 1997. “Corporate Growth and Profitability.” Journal of Industrial Economics 45 (2): 171–189.
  • Grabowski, H., J. Vernon, and J. A. DiMasi. 2002. “Returns on Research and Development for 1990s New Drug Introductions.” PharmacoEconomics 20 (Supplement 3): 11–29.10.2165/00019053-200220003-00002
  • Griliches, Z. 1981. “Market Value, R&D, and Patents.” Economics Letters 7 (2): 183–187.10.1016/0165-1765(87)90114-5
  • Hall, B. H. 1993. “The Stock Market’s Valuation of R&D Investment during the 1980’s.” American Economic Review 83 (2): 259–264.
  • Hall, B., and F. Hayashi. 1989. “Research and Development as an Investment (No. w2973).” National Bureau of Economic Research.
  • Hall, B. H., A. Jaffe, and M. Trajtenberg. 2005. “Market Value and Patent Citations.” Rand Journal of Economics 16–38.
  • Hernandez, H., F. Hervas Soriano, A. Tubke, A. Vezzani, M. Dosso, A. Amoroso, N. Grassano, A. Coad, and P. Gkotsis. 2016. The 2016 EU Industrial R&D Investment Scoreboard. Luxembourg: Publications Office of the European Union.
  • Himmelberg, C. P., and B. C. Petersen. 1994. “R&D and Internal Finance: A Panel Study of Small Firms in High-Tech Industries.” The Review of Economics and Statistics 76: 38–51.10.2307/2109824
  • Hirsch-Kreinsen, H. 2011. “Financial Market and Technological Innovation.” Industry and Innovation 18 (4): 351–368.10.1080/13662716.2011.573954
  • Hussinger, K., and F. Schwiebacher. 2015. “The Market Value of Technology Disclosures to Standard Setting Organizations.” Industry and Innovation 22 (4): 321–344.10.1080/13662716.2015.1049866
  • Hyvärinen, A. 2013. “Independent Component Analysis: Recent Advances.” Phil. Trans. R. Soc. a 371 (1984): 20110534. doi:10.1098/rsta.2011.0534.
  • Hyvarinen, A., S. Shimizu, and P. O. Hoyer. 2008. Causal Modelling Combining Instantaneous and Lagged Effects: An Identifiable Model Based on Non-Gaussianity. In Proceedings of the 25th International Conference on Machine Learning (ICML2008), 424–431. Helsinki .
  • Hyvarinen, A., K. Zhang, S. Shimizu, and P. Hoyer. 2010. “Estimation of a Structural Vector Autoregression Model Using Non-Gaussianity.” Journal of Machine Learning Research 11: 1709–1731.
  • Hyvärinen, A., J. Karhunen, and E. Oja (2001). Independent Component Analysis, Vol. 26. Wiley-interscience.10.1002/0471221317
  • de Jong, P. J. 2007. “The Relationship between Capital Investment and R&D Spending: A Panel Cointegration Analysis.” Applied Financial Economics 17 (11): 871–880.10.1080/09603100600870976
  • Kafouros, M. I., and C. Wang. 2008. “The Role of Time in Assessing the Economic Effects of R&D.” Industry and Innovation 15 (3): 233–251.10.1080/13662710802041638
  • Kamien, M. I., and N. L. Schwartz. 1975. “Market Structure and Innovation: A Survey.” Journal of Economic Literature 13 (1): 1–37.
  • Kancs, D., and B. Siliverstovs. 2016. “R&D and Non-Linear Productivity Growth.” Research Policy 45 (3): 634–646.10.1016/j.respol.2015.12.001
  • Kleinknecht, A., and B. Verspagen. 1990. “Demand and Innovation: Schmookler Re-Examined.” Research Policy 19: 387–394.10.1016/0048-7333(90)90022-X
  • Lach, S., and M. Schankerman. 1989. “Dynamics of R & D and Investment in the Scientific Sector.” Journal of Political Economy 97 (4): 880–904.10.1086/261632
  • Lanne, M., M. Meitz, and P. Saikkonen. 2017. “Identification and Estimation of Non-Gaussian Structural Vector Autoregressions.” Journal of Econometrics 196 (2): 288–304.10.1016/j.jeconom.2016.06.002
  • Leiponen, A. 2005. “Skills and Innovation.” International Journal of Industrial Organization 23 (5): 303–323.10.1016/j.ijindorg.2005.03.005
  • Love, I., and L. Zicchino. 2006. “Financial Development and Dynamic Investment Behavior: Evidence from Panel VAR.” Quarterly Review of Economics and Finance 46 (2): 190–210.10.1016/j.qref.2005.11.007
  • Della Malva, A., and E. Santarelli. 2016. “Intellectual Property Rights, Distance to the Frontier, and R&D: Evidence from Microdata.” Eurasian Business Review 6: 1–24.10.1007/s40821-015-0022-4
  • Meehl, P. E. 1990. “Why Summaries of Research on Psychological Theories Are Often Uninterpretable.” Psychological Reports 66 (1): 195–244.10.2466/pr0.1990.66.1.195
  • Melitz, M. J. 2003. “The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity.” Econometrica 71 (6): 1695–1725.10.1111/ecta.2003.71.issue-6
  • Moneta, A., D. Entner, P. Hoyer, and A. Coad. 2013. “Causal Inference by Independent Component Analysis: Theory and Applications.” Oxford Bulletin of Economics and Statistics 75 (5): 705–730.10.1111/obes.2013.75.issue-5
  • Montresor, S., and A. Vezzani. 2015. “The Production Function of Top R&D Investors: Accounting for Size and Sector Heterogeneity with Quantile Estimations.” Research Policy 44 (2): 381–393.10.1016/j.respol.2014.08.005
  • Montresor, S., and A. Vezzani. 2016. “Intangible Investments and Innovation Propensity: Evidence from the Innobarometer 2013.” Industry and Innovation 23 (4): 331–352.10.1080/13662716.2016.1151770
  • Mooij, J., D. Janzing, J. Peters, and B. Scholkopf. 2009. “Regression by Dependence Minimization and Its Application to Causal Inference.” In Proceedings of the 26th International Conference on Machine Learning, 745–752.
  • Pearl, J. 2009. Causality: Models, Reasoning and Inference. 2nd ed. Cambridge: Cambridge University Press.10.1017/CBO9780511803161
  • Penrose, E. T. 1959. The Theory of the Growth of the Firm. Oxford: Basil Blackwell.
  • Piva, M., and M. Vivarelli. 2007. “Is Demand-Pulled Innovation Equally Important in Different Groups of Firms?” Cambridge Journal of Economics 31: 691–710.10.1093/cje/bem010
  • Piva, M., and M. Vivarelli. 2009. “The Role of Skills as a Major Driver of Corporate R&D.” International Journal of Manpower 30: 835–852.10.1108/01437720911004452
  • Rolfstam, M. 2013. Public Procurement and Innovation. Cheltenham: Edward Elgar Publishing.10.4337/9780857930521
  • Scherer, F. M. 1982. “Demand-Pull and Technological Invention: Schmookler Revisited.” Journal of Industrial Economics 30: 225–237.10.2307/2098216
  • Scherer, F. M. 2001. “The Link between Gross Profitability and Pharmaceutical R&D Spending.” Health Affairs 20: 216–220.10.1377/hlthaff.20.5.216
  • Schmookler, J. 1966. Invention and Economic Growth. Cambridge, MA: Harvard University Press.10.4159/harvard.9780674432833
  • Shepherd, D., and J. Wiklund. 2009. “Are We Comparing Apples with Apples or Apples with Oranges? Appropriateness of Knowledge Accumulation across Growth Studies.” Entrepreneurship Theory and Practice 33 (1): 105–123.10.1111/etap.2009.33.issue-1
  • Shimizu, S. 2014. “Lingam: Non-Gaussian Methods for Estimating Causal Structures.” Behaviormetrika 41 (1): 65–98.10.2333/bhmk.41.65
  • Shimizu, S., P. Hoyer, A. Hyvärinen, and A. Kerminen. 2006. “A Linear Non-Gaussian Acyclic Model for Causal Discovery.” Journal of Machine Learning Research 7: 2003–2030.
  • Stock, J. H., and M. W. Watson. 2001. “Vector Autoregressions.” Journal of Economic Perspectives 15 (4): 101–115.10.1257/jep.15.4.101
  • Stone, J. 2004. Independent Component Analysis: A Tutorial Introduction. Cambridge, MA: MIT Press.
  • Sung, T., C. Y. Lee, and H. Ahn. 2016. “What Determines Firms’ R&D Intensity in Business Groups with Cross-Ownership Structures?” Industry and Innovation 1–26.
  • Thompson, P. 1999. “Rationality, Rules of Thumb, and R&D.” Structural Change and Economic Dynamics 10: 321–340.10.1016/S0954-349X(99)00007-7
  • Toivanen, O., and P. Stoneman. 1998. “Dynamics of R&D and Investment: UK Evidence.” Economics Letters 58 (1): 119–126.10.1016/S0165-1765(97)00273-5
  • Tornqvist, L., P. Vartia, and Y. O. Vartia. 1985. “How Should Relative Changes Be Measured?” American Statistician 39 (1): 43–46.
  • Vivarelli, M. 2013. “Technology, Employment and Skills: An Interpretative Framework.” Eurasian Business Review 3 (1): 66–89.
  • Wooldridge, J. M. 2002. Econometric Analysis of Cross Section and Panel Data. Cambridge, MA: MIT press.
  • Xu, X. 2017. “Contemporaneous Causal Orderings of US Corn Cash Prices through Directed Acyclic Graphs.” Empirical Economics 52 (2): 731–758.10.1007/s00181-016-1094-4

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.