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dc.contributor.authorKumbhakar, Subal C.en_US
dc.contributor.authorOrtega-Argilés, Raquelen_US
dc.contributor.authorPotters, Lesleyen_US
dc.contributor.authorVivarelli, Marcoen_US
dc.contributor.authorVoigt, Peteren_US
dc.description.abstractThe main objective of this study is to investigate the impact of corporate R&D activities on firms' performance, measured by labour productivity. To this end, the stochastic frontier technique is applied, basing the analysis on a unique unbalanced longitudinal dataset consisting of 532 top European R&D investors over the period 2000-2005. R&D stocks are considered as pivotal input in order to control for their particular contribution to firm-level efficiency. Conceptually, the study quantifies the technical inefficiency of a given company and tests empirically whether R&D activities could explain the distance from the efficient boundary of the production possibility set, i.e. the production frontier. From a policy perspective, the results of this study suggest that - if the aim is to leverage companies' productivity - emphasis should be put on supporting corporate R&D in high-tech sectors and, to some extent, in medium-tech sectors. By contrast, supporting corporate R&D in the low-tech sector turns out to have a minor effect. Instead, encouraging investment in fixed assets appears vital for the productivity of low-tech industries. However, with regard to firms' technical efficiency, R&D matters for all industries (unlike capital intensity). 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.en_US
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen_US
dc.relation.ispartofseries|aIZA Discussion Papers |x4657en_US
dc.subject.keywordCorporate R&Den_US
dc.subject.keywordtechnical efficiencyen_US
dc.subject.keywordstochastic frontier analysisen_US
dc.subject.stwIndustrielle Forschungen_US
dc.subject.stwTechnische Effizienzen_US
dc.titleCorporate R&D and firm efficiency: evidence from Europe's top R&D investorsen_US
dc.type|aWorking Paperen_US

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