Heterogeneity, R&D and growth: a quantile regression approach

Mazzucato, Mariana and Parris, Stuart (2014) Heterogeneity, R&D and growth: a quantile regression approach. Small Business Economics, 43 (1). ISSN 0921-898X

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Abstract

Firms across sectors and regions are highly skewed in their ability to engage with innovation and even more skewed in their ability to translate investments in innovation into higher growth. Recent attention has been placed on the importance of ‘high-growth firms’ (HGF) for innovation policy. Our paper explores under what conditions HGF matter for translating R&D investments into economic growth and how this depends on firm-specific and industry-specific factors. We use quantile regression techniques to study the R&D–growth relationship in HGF compared to low-growth firms. Unlike previous studies, we pay particular attention to whether this relationship depends on the particular period in the industry’s life cycle. We focus on the US pharmaceutical industry from 1963 to 2002 and find that the R&D–growth relationship is sensitive to the changing competitive environment over the industry’s history, which suggests that innovation policy must focus not only on firm attributes but also competitive structures.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > SPRU - Science Policy Research Unit
Subjects: H Social Sciences
Depositing User: Janet Snow
Date Deposited: 16 Dec 2014 06:55
Last Modified: 16 Dec 2014 06:55
URI: http://sro.sussex.ac.uk/id/eprint/51700
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