@techreport{Coad2007Firm,
abstract = {We apply a panel vector autoregression model to a firm-level longitudinal database to observe the co-evolution of sales growth, employment growth, profits growth and growth of R&D expenditure. Contrary to expectations, profit growth seems to have little detectable effect on R&D investment. Instead, firms appear to increase their total R&D expenditure following growth in sales and growth of employment. In a sense, firms behave as if they aim for a roughly constant ratio of R&D to employment (or sales). We observe heterogeneous effects for growing or shrinking firms however, suggesting that firms are less willing to reduce their R&D levels following a negative growth shock than they are willing to increase R&D after a positive shock.},
address = {Jena},
author = {Alexander Coad and Rekha Rao},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {L20; L10; O32; 330; Firm Growth; Panel VAR; R&D expenditure; Industrial Dynamics; Unternehmenswachstum; Industrielle Forschung; Forschungskosten; USA},
language = {eng},
number = {0710},
publisher = {Max-Planck-Inst. f\"{u}r \"{O}konomik},
title = {Firm growth and R&D expenditure},
type = {Papers on economics and evolution},
url = {http://hdl.handle.net/10419/31852},
year = {2007}
}
