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The purpose of this paper is to analyse the role that different financial sources and financial specialization have on private research and development (R&D) activity in OECD countries.

The authors developed several panel regressions choosing as a final model a two-way random effects regression to understand which funding sources are related to the R&D expenditure, and how financial specialization has links to the private portion of R&D aggregated expenditure. The authors include data from the years 2000 to 2016 for OECD countries.

The results reinforce the critical role that stock markets have in enhancing private R&D and that bond markets have an inverse relationship with private R&D national expenditures. The authors do not find evidence of a link between bank sources and private R&D. Specialized financial systems (banking or market) support innovation in a better way than a mixed arrangement of those two systems.

The findings of this study have considerable policy implications. Policymakers need to be aware of these results, given that some variables related to financial markets, seems to boost the inputs for R&D. In the long term, this could be a signal that national and regional systems of innovation need a broad view of the factors hampering scientific activity, and also a signal that there are other ways to impact the results of the complex innovation activity through the development of stronger financial systems backing up national systems of innovation.

The authors found that the long discussion about the financial system that a country has to choose to enhance growth with R&D&I may have been misleading the public policy. The findings show that rather than a bank or a stock market financial system, economies looking to boost R&D&I, must specialize in one of the two systems, deepen these and generate the appropriate policies to promote science, technology and innovation using those financial markets.

Innovation has become the engine of economic growth, especially with the Fourth Industrial Revolution. This paper aims at studying the association between innovation – measured by gross expenditure on research and development (GERD) – and economic performance – represented by real gross domestic product (GDP) – in MENA region over the period 1996-2016.

The paper uses the panel corrected standard error method to account for heteroskedacity and possible contemporaneous correlation across panels, and the first order autocorrelation within panel for unbalanced datasets.

The study concludes that R&D expenditure is positive and statistically significant in explaining GDP, but their relationship is weak. Specifically, a 10 per cent increase in R&D expenditure raises GDP by 4 per cent. In addition, human capital, labor force and fixed capital accumulation are found positive and statistically significant. These findings highlight on the importance of innovation and education on fostering economic growth, urging MENA governments to further invest in R&D and innovation sector.

To the best of the author’s knowledge, this paper is the first to investigate the relationship between GERD and GDP in MENA region within the endogenous-growth model framework.

The purpose of this paper is to investigate the value relevance of Research and development (R&D) and free cash flow (FCF) in an efficient investment setup. Most importantly, this paper examines whether the value relevance of R&D and FCF is associated with life cycle stages. Furthermore, this paper reports whether the market response to R&D and FCF is different in competitive market as compared to the concentrated market.

The analysis is based on the Ohlson (1995) model for the determination of value relevance of earnings and book value. Capitalized R&D and FCF data comprising of the Chinese A-listed firms from the year 2008 to 2016 are selected for this study. Following Anthony and Ramesh (1992), the authors divided the firm life cycle into different stages. HHI index is used to measure the product market competition.

The main result shows that R&D and FCF are value relevant in Chinese A-listed firms. The impact of R&D and FCF on the value relevance of earnings and book value is also positive and significant. The findings of the effect of R&D and FCF on the value relevance of accounting information signify that the information content (R²=0.46) of the mature stage is higher than that of the growth and stagnant stage. The explanatory power measured by R² value for competitive industries (0.47) is much higher than the concentrated industries (0.33).

Despite taking into account all the possible available variables, there are few limitations of the study. This study only studies the effect of EPS, BPS, R&D and FCF on the value relevance of accounting information. Other determinant such as size, growth, leverage and firm age is ignored. Since the R&D expenditure is discretionary, therefore the findings cannot be generalized to all the sectors. A sector wise comparative study can be done in future, to understand the differences in the information contents of R&D and FCF. Also, the tax effect of R&D is ignored in this study. For future call, the value relevance of tax effect on R&D can be explored.

The investors can now determine the present value of all the future cash flows of investing activities. The results of the study are significant for the Chinese investors who should incorporate the R&D and FCF along with investment efficiency. The investors should keep in mind the life cycle stage while investing in a certain stock. The competitive markets have more information content than the concentrated markets. The corporate managers can benefit from this study while issuing new shares. The market responds positively to the stock having investment efficient R&D and FCF investment. For the policy implication perspective, the security market regulator should devise the effective pro-effective product market regulations.

The contribution of this study is manifold. First, according to the authors’ knowledge, this is the first study that incorporates investment efficiency with R&D and FCF and explores its effect on the value relevance of accounting information. Second, the impact of R&D on the value relevance is studied by numerous researchers (Lev and Sougiannis, 1996; Han and Manry, 2004). Similarly, FCF-agency cost effect has also been investigated by (Rahman and Mohd-Saleh, 2008; Chen et al., 2012) but the value relevance of R&D and FCF during different life cycle stages still needs to be answered. Finally, this study also tries to answers the question if the market response to R&D and FCF is different in a competitive market as compared to the concentrated market.

Innovation is regarded as a crucial determinant of growth and development in South Africa, and small, medium and micro enterprises (SMMEs) have been earmarked as instruments for the achievement of the socio-economic goals and innovation as set out in the National Development Plan. The purpose of this study is to investigate the effect of innovation on SMME performance in South Africa.

The empirical analysis was conducted using the quantile regression technique to examine the effect of innovation on the performance of firms at different sales levels. Data from the World Bank's enterprise survey was used for the analysis.

The results of the empirical analysis showed that R & D expenditures have a positive and significant effect on performance for firms with higher sales (high growth or larger firms). There is evidence that the introduction of new products/services promotes performance for low growth/ smaller firms.

The empirical results imply that innovation is crucial for SMMEs’ development and growth. However, smaller/low growth firms are not able to spend on R & D due to a lack of funds which could be the reason for their low survival rate. More support needs to be provided to smaller firms with lower sales growth, given the large financial outlay required for R & D expenditures. Despite the lack of funding for R & D expenditure, smaller firms are encouraged to introduce new products and methods of production that do not require major financial outlays.

There is scant empirical evidence on the impact of innovation on firm performance in South Africa. Most studies investigate the challenges faced by SMMEs and the different types of innovation approaches used by firms. Furthermore, the study employs the quantile regression approach which highlights the effect of innovation on firms of different sizes.

This study aims to explain the effect of research and development (R&D) incentives on economic growth, focusing on the case of Türkiye. A one-sector endogenous growth model has been constructed. The model includes three actors: firm, consumer and government. The consumer derives utility from consumption, supplies human capital and engages in saving. The representative firm invests in R&D to maximize the current value of profit flows by choosing how much input it will use and how much R&D it will undertake. The public sector provides incentives for labor and capital used in R&D production. R&D has been defined as a function that endogenously increases total factor productivity (TFP).

In line with the stated purpose, this study presents a dynamic general equilibrium model. Then, this study calibrates the model parameters with Türkiye's data.

The results imply that incentives for R&D personnel instead of physical capital have a stronger impact on economic growth.

The findings of this study point to an important conclusion on how to distribute R&D incentives across the two main factors in R&D production, labor and capital. Incentives given to R&D personnel are more effective in Türkiye.

This study shows that the R&D incentives provided by the public sector can be important in emerging countries where many firms have just started their R&D activities. In this study, the authors worked on Türkiye as an emerging country. This study discusses policies on how the R&D incentives will be more effective on economic growth in Türkiye. This study considers that these policies may apply to all emerging countries, due to similar R&D activities in countries that cannot export technology and mostly import technology.

本研究擬以土耳其的實例為焦點, 探討研究與開發 (研發) 的激勵如何影響經濟的增長;具體地說, 研究旨在探討透過不同生產要素所提供的研發激勵所產生的影響存在著什麼差異。

為達研究目的, 研究人員構建了一部門內生增長模型。模型內有三個參與者: 公司、消費者和政府。消費者從消費中得到他們所需要的, 提供人力資本, 並參與儲蓄的活動。為了要把利潤的現值儘量提高, 代表公司透過調控投入的數量和研發的承擔, 投資在研發上。公共部門會為研發生產上使用的勞工和資本提供激勵。研究與開發被解釋為一個以內生方式增加全要素生產率的功能。構建的模型是因應土耳其的經濟狀況而調整出來的, 當中也進行了仿真模擬。

研究結果暗示, 為研發人員提供的激勵, 而不是物質資本, 更能推動經濟增長。

研究結果, 就如何於研發生產的兩個主要因素之間, 即勞工與資本之間, 分配研發激勵的問題上, 提供了重要的結論;就土耳其而言, 分配給研發人員的激勵是更為有效的。

我們展示了在新興國家裏, 公共部門提供的研發激勵是重要的, 而在這些國家裏, 剛開始進行研發活動的公司為數不少。在本研究裏, 我們把土耳其當作新興國家看待。我們討論了若要在土耳其使研發激勵更有效地幫助推動經濟增長, 什麼政策是最合適的呢? 因為那些不能把技術出口到其它地方, 而主要靠引進技術的國家均進行相似的研發活動, 所以我們認為討論得來的政策是可應用於所有新興國家的。

This paper evaluates the effects of tax incentives on business innovation in Brazil that were established by Law 11,196/05 (the “Fiscal Incentives Law”) to test whether they have had a positive impact on beneficiary firms' innovation input and output and on their performance.

The policy impacts are estimated using microdata on 13,706 firms available in the 2008 and 2011 editions of the Brazilian Innovation Survey (PINTEC) and by applying propensity score matching with difference-in-differences.

The results suggest a positive and statistically significant impact of the policy on research and development (R&D) expenditures (average of approximately US$ 264,000 in 2011), the number of research staff (average of five researchers) and total employment (approximately 5% of the beneficiary firms' mean size). However, no impact was found on the overall spending on innovative activities, the percentage of sales and exports from new products, net revenue or net revenue per employee.

The findings provide empirical support in favor of tax incentives as a policy tool to boost business innovation in the country. However, the absence of significant effects on innovative activities expenditures and on most indicators of innovation output and firms' performance reveals shortcomings of the policy that need to be addressed.

The study complements and advances the findings of previous studies by assessing policy impact on total innovative activities expenditures and on innovation output and firm performance.

The study examines the impact of socio-economic governance on economic growth in Nigeria. It measures socio-economic governance from the perspective of fiscal policy, using indicators such as investment in education, research and development (R&D) and health.

This study employs the Autoregressive Distributive Lag (ARDL) Bound Testing method to achieve its objective.

The study finds that socio-economic policies aimed at increasing investment in education are crucial for Nigeria’s long-term economic growth. Additionally, investment in R&D positively impacts economic growth. However, the study reveals that investment in health negatively affects economic growth in Nigeria in the long run. This suggests that if a country overinvests in health, it may divert resources from other vital sectors such as education, infrastructure and R&D, which can hinder overall economic growth. The short-run parameter is, however, not statistically significant in this study.

The study’s originality lies in its exploration of the relationship between socio-economic governance and economic growth in Nigeria, specifically from a fiscal policy perspective. It highlights the importance of investing in education and R&D for long-term economic growth. Additionally, the finding that overinvestment in health may have a negative impact on long-term economic growth provides valuable insight for policymakers in Nigeria and other developing countries. Overall, this study’s findings can be beneficial for policymakers and researchers interested in the intersection between socio-economic governance and economic growth in developing countries.

The purpose of this paper is to present a review of the literature on two lines of research, corporate governance and innovation, explaining how different internal corporate governance mechanisms may be determinants of business innovation.

It explores the theoretical background and the empirical evidence regarding the influence of both ownership structure and the board of directors on company innovation. Then, conclusions are drawn and possible future research lines are presented.

No consensus was observed regarding the relation between corporate governance and innovation, with both positive and negative arguments being found, and with empirical evidence not always pointing in the same direction. Thus, new studies trying to clarify this relationship are needed.

Over recent years, interest has grown in the influence of governance mechanisms on innovation decisions taken by the management. Innovation efforts and results depend on factors that are influenced by corporate governance, such as ownership structure or the functioning of the board of directors. Thus, the paper shows an updated state of the art in this field proposing future lines for empirical research.

This paper analyzes the productivity effects of structural capital such as research and development (R&D) and organizational capital (OC). Innovation work also produces innovation-labor-biased technical change (IBTC) and knowledge spillovers. Analyses use full register-based dataset of Finnish firms for the period 1994–2014 from Statistics Finland.

Intangibles are derived from the labor costs of innovation-type occupations using linked employer-employee data. The approach is consistent with National Accounting and offered as one method in OECD (2010) and applied in statistical offices, e.g. in measuring software. The EU 7th framework Innodrive project 2008–2011 extended this method to cover R&D and OC.

Methodology is implementable at firm-level and offers way to link personnel reporting to intangible assets. The OC-IBTC as well as total resources allocated to OC are relevant for productivity growth. The R&D stock is relatively higher but R&D-IBTC is smaller than OC-IBTC. Public policy should, besides technology policy, account for OC and OC-IBTC and related knowledge spillovers in the industries that are most important among the SMEs (low market-share-firms).

The data are based on remote access to Statistics Finland; the data cannot be disseminated.

Intangible assets are measured from innovation work that encompasses not only R&D work. IBTC is proxied in production function estimation by relative compensations on IA work. The non-competing nature of IAs is captured by IA knowledge spillovers. The sample sizes are much higher than in earlier studies on horizontal knowledge spillovers (such as for SMEs,) thus bringing additional generality to the results.

This study aims to establish the position of the European Union (EU-28) countries in the dynamics of international trade openness linkages and the Global Competitiveness Index (GCI) in correlation with the gross domestic product (GDP) per capita, research and development (R&D) expenditures, innovation capability and information and communication technology (ICT) adoption.

In the panel data set, comparative analyses were applied to scatter diagrams, correlation and regression analyses and structural equation models using Eurostat and World Economic Forum (WEF) data for the EU-28 countries in the period 2008–2019.

The empirical results did not confirm the hypotheses that a positive correlation exists between GCI and trade openness indicators and between GDP per capita and GCI. The ICT adoption and innovation capability increase GCI, which affects GDP per capita.

The empirical results provide a better understanding of the importance of trade policies, particularly in terms of trade openness and trade shares of the EU-28 countries, as it could contribute to increasing the GCI of the EU-28 countries. Furthermore, the results of this study underline the importance of ICT adoption and innovation capability and the need for appropriate government policies that improve global competitiveness.

This study, through empirical analysis, demonstrates the existence of correlations between trade openness (exports as % of GDP, imports as % of GDP and export market shares as % of world trade), R&D expenditures, innovation capability, ICT adoption, GDP per capita and the GCI in the EU-28 countries. In addition, this study contributes managerial and policy-based implications on driving forces of global competitiveness.