Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/202127
Authors: 
Kumbhakar, Subal C.
Ortega-Argilés, Raquel
Potters, Lesley
Vivarelli, Marco
Voigt, Peter
Year of Publication: 
2010
Series/Report no.: 
IPTS Working Papers on Corporate R&D and Innovation 11/2010
Abstract: 
The main objective of this study is to investigate the impact of corporate R&D activities on firm performance, measured by labour productivity. To this end, the stochastic frontier technique is used on a unique unbalanced longitudinal dataset on top European R&D investors over the period 2000–2005. The study quantifies technical inefficiency of individual firms. From a policy perspective, the results of this study suggest that – if the aim is to leverage firms’ productivity – emphasis should be put on supporting corporate R&D in high-tech sectors and, to some ex-tent, in medium-tech sectors. On the other hand, corporate R&D in the low-tech sector is found to have a minor effect in explaining productivity. Instead, encouraging investment in fixed assets appears important for the productivity of low-tech industries. Hence, the allocation of support for corporate R&D seems to be as important as its overall increase and an ‘erga omnes’ approach across all sectors appears inappropriate. However, with regard to technical efficiency, R&D intensity is found to be a pivotal factor in explaining firm efficiency. This is true for all industries.
Subjects: 
Corporate R&D
productivity
technical efficiency
stochastic frontier analysis
JEL: 
L2
O3
Persistent Identifier of the first edition: 
ISBN: 
978-92-79-18946-3
Document Type: 
Working Paper
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