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Article
Publication date: 19 June 2019

Christos Sofronas, Fragiskos Archontakis and Palie Smart

In the research & development (R&D) and innovation management literature, the question of whether or not to perform research in the private sector is always a pertinent…

Abstract

Purpose

In the research & development (R&D) and innovation management literature, the question of whether or not to perform research in the private sector is always a pertinent one. Several studies have used market value to measure its association with a firm’s R&D performance. Nevertheless, in Europe there have been considerably less studies as compared to the USA because the analysis is complicated by data issues and different country-specific laws. The purpose of this paper is to further advance this field of research. The study provides insights into the strategic decision behind conducting R&D.

Design/methodology/approach

The econometric analysis is based on a unique panel data set of 133 companies in 13 European countries which is collected from the Bloomberg database covering the time period from 2002 to 2012.

Findings

The empirical findings are as follows: there is weak evidence in support of the hypothesis that R&D expenditure positively affects the firm’s market value, a fact which is confirmed by other published works; there is weak evidence that economic events can disrupt the connection of R&D programs with the market value of firms; and for a highly controversial topic in the literature, data suggest that small firms are rather favoured more from R&D expenditure than large firms.

Originality/value

The current study expands the discussion regarding the effect of R&D on the market value of firms via empirical evidence, within the specific environment of the European financial crisis. Future managerial, informed-based, decisions can be drawn on the present results.

Details

European Journal of Innovation Management, vol. 23 no. 3
Type: Research Article
ISSN: 1460-1060

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Article
Publication date: 13 June 2008

L. Aldieri, M. Cincera, A. Garofalo and C.P. Vinci

The aim of this paper is to assess the effects of traditional inputs and firms' R&D capital on labour productivity growth.

Abstract

Purpose

The aim of this paper is to assess the effects of traditional inputs and firms' R&D capital on labour productivity growth.

Design/methodology/approach

The study measures the effects of the traditional inputs on firms' productivity growth, through four procedures: OLS in first differences, within group, GMM in first differences and GMM system.

Findings

Whatever the specification considered, the more efficient estimates obtained from the GMM system show a similar effect of the firm's R&D stock upon its labour productivity performance.

Practical implications

The results suggest that physical capital plays a more prominent role for European firms than for US ones, while employees are more productive in the USA.

Originality/value

By presenting some empirical evidence on the effects of R&D on labour productivity, at the firm level, the present study makes two main contributions to the existing literature. First, a unique firm‐level database for European and US firms is used. It is self evident that firms in these countries operate in different economic and institutional settings; as a consequence the results identify some robust common effects concerning the two areas considered (the USA versus Europe) at the micro level. Second, service and manufacturing sectors are merged.

Details

International Journal of Manpower, vol. 29 no. 3
Type: Research Article
ISSN: 0143-7720

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Book part
Publication date: 23 August 2017

Solveig Kirstine Bennike Bennedsen and Lærke Lissau Lund-Sørensen

In this chapter, we analyzed the effects of internationalization on innovation, productivity, and firm performance among multinational pharmaceutical companies as…

Abstract

In this chapter, we analyzed the effects of internationalization on innovation, productivity, and firm performance among multinational pharmaceutical companies as representatives of a global knowledge-based industry. The empirical analysis used multiple stepwise regressions based on a sample of 149 firms headquartered in Europe and the US. The results indicate that innovation outcomes are positively correlated to the number of foreign subsidiaries (scope internationalization), whereas surprisingly, formal research and development (R&D) does not seem to directly influence innovation. This suggests that the firms benefit from local overseas subsidiaries to create and implement new innovative offerings. The number of foreign subsidiaries has a U-shaped relationship to patent productivity suggesting that firms can gain advantages by locating cost-intensive activities in low-cost countries and critical tasks in advanced market locations. Firm performance has a U-shaped relationship to sales abroad (scale internationalization) and the relationship is further enhanced by a high focus on R&D. This suggests that sales abroad enable scale economies, where R&D improves quality and relevance of products and thereby boosts performance. Finally, to validate the findings we conducted two semi-structured interviews with representative industry experts and gained further insights for an extended interpretation of results.

Details

The Responsive Global Organization
Type: Book
ISBN: 978-1-78714-831-4

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Book part
Publication date: 29 November 2019

Maria José Palma Lampreia Dos-Santos and Henrique Diz

Efficiency and productivity has always being a key issue in economic science. The analysis of the impact of research and development (R&D) has been extensively studied in…

Abstract

Efficiency and productivity has always being a key issue in economic science. The analysis of the impact of research and development (R&D) has been extensively studied in industries and countries of more or less aggregated level. This chapter aims to investigate the impact of corporate R&D in performance of low-tech industries, medium-tech, and high-tech in OECD countries.

This chapter aims to answer the questions: Is the impact of R&D significant for all types of industries? If so, what are the differences and the magnitude of these effects in each of these types of industries?

To this end, an unbalanced data set from 2000 to 2011 was collected for the main countries of Europe and the United States concerning low-, medium-, and high-tech to analyze the impact of the magnitude of corporate R&D and capital accumulation on productivity of these industries. The productivity of industries was measured by stochastic parametric frontier functions, in order to measure the efficiency of R&D and accumulation of capital on labor productivity.

The main results highlight the impact of corporate R&D on productivity of high-tech industries, but for other industries those relations are not clear. However, capital accumulation became crucial on low technology to improve their performance. These results, although needing to include a more extensive data set of industries across countries, refer the need for policy and decision makers to allocate public funds for R&D in high-tech industries, while the investment in capital seems crucial, particularly in low-tech industries to improve the productivity.

Details

The Cross-Disciplinary Perspectives of Management: Challenges and Opportunities
Type: Book
ISBN: 978-1-83867-249-2

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Article
Publication date: 30 December 2020

Enrique Acebo, José-Ángel Miguel-Dávila and Mariano Nieto

The purpose of this paper is to analyse whether the effect of innovation subsidies on firms' R&D investment varies depending on whether the firm is suffering from…

Abstract

Purpose

The purpose of this paper is to analyse whether the effect of innovation subsidies on firms' R&D investment varies depending on whether the firm is suffering from financial constraints.

Design/methodology/approach

To address this analysis, the authors provide a theoretical model and test their hypothesis using an econometric analysis of an unbalanced panel of 3,865 innovative Spanish firms during 2010–2017. They employ the SABI database to obtain firms' financial and economic data and incorporate firms' MORE financial rating. Specifically, the authors use the GMM-SYS technique to regress and measure the marginal effects of innovation subsidies size on firms' R&D investment and the influence of firms' financial constraints.

Findings

The results of this work indicate that financial constraints negatively moderate the effect of subsidies on R&D investment; that is, those firms that receive a subsidy and suffer financial constraints invest less in R&D projects than those which also receive the subsidy and do not suffer financial constraints. Besides, this work found that innovation subsidies alone do not significantly increase firms' R&D investment.

Originality/value

From a neoclassical point of view, the existence of financial constraints is the justification of public innovation policies. However, due to the difficulty of measuring financial constraints, innovation literature has abandoned the analysis of this crucial variable. This work reintroduces this vital variable and analyses how it interacts with innovation subsidies on firms' R&D investment.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

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Book part
Publication date: 13 May 2021

P. P. Mohanty and Niharranjan Mishra

Overtourism is an emerging concept and a perennial process every destination is going through. It is a cyclic phenomenon derived from the destination, retained in the…

Abstract

Overtourism is an emerging concept and a perennial process every destination is going through. It is a cyclic phenomenon derived from the destination, retained in the destination and at last demised by the destination. It's a kind of ‘tourism illness’ spreading rapidly in every destination in the present scenario. The status of overtourism in every destination has been caused by the tourist, of the tourist and for the tourist. In the context of religious places in Odisha, overtourism is a ‘disorder’ that cannot be mitigated, as religiosity, faith and spiritualism have propelled and governed people's sentiment and emotion. Hence ambiguity arises out of making an intrigue situation between a myth or a spiritual sojourn bounded by faith and belief. This chapter significantly contributes by unfolding the existing literature by providing the origin and evolution of overtourism, various stated definitions by the different authors, causes and consequences, and overtourism in religious destinations by adopting an exploratory study, particularly in case of the Golden triangle of Odisha.

Details

Overtourism as Destination Risk
Type: Book
ISBN: 978-1-83909-707-2

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Book part
Publication date: 4 August 2015

Fabiana Moreno and Alex Coad

High-growth firms (HGFs) make a considerable contribution to economic growth, and in recent years they have received increasing interest from entrepreneurship scholars. By…

Abstract

High-growth firms (HGFs) make a considerable contribution to economic growth, and in recent years they have received increasing interest from entrepreneurship scholars. By analysing recent findings in the literature of high-growth firms, this study identifies some Stylized Facts, as well as contradictory findings, and also some unknowns regarding the determinants and internal strategies of HGFs, particularly on the persistence of their superior growth performance and the implications of recent findings for economic policy.

Details

Entrepreneurial Growth: Individual, Firm, and Region
Type: Book
ISBN: 978-1-78560-047-0

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Book part
Publication date: 1 December 2016

Yiyi Wang, Kara M. Kockelman and Paul Damien

This paper analyzes county-level firm births across the United States using a spatial count model that permits spatial dependence, cross-correlation among different…

Abstract

This paper analyzes county-level firm births across the United States using a spatial count model that permits spatial dependence, cross-correlation among different industry types, and over-dispersion commonly found in empirical count data. Results confirm the presence of spatial autocorrelation (which can arise from agglomeration effects and missing variables), industry-specific over-dispersion, and positive, significant cross-correlations. After controlling for existing-firm counts in 2008 (as an exposure term), parameter estimates and inference suggest that a younger work force and/or clientele (as quantified using each county’s median-age values) is associated with more firm births (in 2009). Higher population densities is associated with more new basic-sector firms, while reducing retail-firm starts. The modeling framework demonstrated here can be adopted for a variety of settings, harnessing very local, detailed data to evaluate the effectiveness of investments and policies, in terms of generating business establishments and promoting economic gains.

Details

Spatial Econometrics: Qualitative and Limited Dependent Variables
Type: Book
ISBN: 978-1-78560-986-2

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Article
Publication date: 1 December 2020

Mariano Nieto, Daniel Alonso-Martínez and Nuria González-Álvarez

The purpose of the paper is to study the determinants of firms' innovation effort using the main approaches in strategic management. The authors specifically analyze the…

Abstract

Purpose

The purpose of the paper is to study the determinants of firms' innovation effort using the main approaches in strategic management. The authors specifically analyze the joint effects of industry structure and country characteristics on innovation effort while controlling for firm resources.

Design/methodology/approach

The hypotheses proposed are tested using a data set that includes firms registered in the EU Industrial R&D Investment (IRI) Scoreboard (European Commission, 2011). Specifically, the authors designed and applied a Generalized Method of Moments (GMM) method to perform an empirical analysis using a panel of 1,211 innovative firms in 55 industries and 26 countries between 2004 and 2012.

Findings

Country factors have significant effects on innovation effort. Results also indicate that the moderating and complementary effects of industry and country factors depend on the geographical area.

Practical implications

Although managers have generally tended to take into account only the firm perspective in innovation activities, this paper highlights that institutional factors are also relevant and play a key role in innovation effort. The authors provide suggestions for managers on how to ensure that their investment in innovation is efficient. They also suggest that the effect of some institutional factors may be modified by competitive pressure on firms' innovation effort.

Originality/value

The paper makes an incremental contribution to the literature on the determinants of innovation by providing a different approach to firm innovation determinants and taking into account the complementarities between institutional and industrial factors.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

Keywords

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Book part
Publication date: 24 May 2017

Dimitris Bibikas, Tim Vorley and Robert Wapshott

Entrepreneurship is viewed as essential to the future prosperity of Europe and creating societies that are socially and economically inclusive. The information…

Abstract

Entrepreneurship is viewed as essential to the future prosperity of Europe and creating societies that are socially and economically inclusive. The information communication technology (ICT) sector has been identified as an area of great entrepreneurial potential for Europe and yet the continent struggles to create global leaders in the digital startup space. In response to this challenge, the European Commission launched its Entrepreneurship 2020 Action Plan to stimulate and support young people to become entrepreneurs and exploit the potential of ICT, in terms developing new digital products and services. This chapter reports on a project to develop and deliver a series of pan-European summer academies for entrepreneurship training funded by Horizon 2020. The chapter details the process of developing the academies and offer reflections on the impacts of the project.

Details

Entrepreneurship Education
Type: Book
ISBN: 978-1-78714-280-0

Keywords

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