Market Reactions to Firm Growth and R&D Investment*

2008 ◽  
Author(s):  
Dain C. Donelson ◽  
Robert Resutek
Keyword(s):  
Firm Growth ◽  
Market Reactions ◽  
D Investment

scholarly journals Tools for causal inference from cross-sectional innovation surveys with continuous or discrete variables: Theory and applications

2018 ◽  
Vol 37 (75) ◽  
pp. 779-808 ◽  
Author(s):  
Alex Coad ◽  
Dominik Janzing ◽  
Paul Nightingale
Keyword(s):  
Causal Inference ◽  
Learning Community ◽  
Firm Growth ◽  
Additive Noise ◽  
Public Funding ◽  
Data Driven ◽  
Cross Sectional ◽  
Innovation Surveys ◽  
Noise Models ◽  
D Investment

This paper presents a new statistical toolkit by applying three techniques for data-driven causal inference from the machine learning community that are little-known among economists and innovation scholars: a conditional independence-based approach, additive noise models, and non-algorithmic inference by hand. We include three applications to CIS data to investigate public funding schemes for R&D investment, information sources for innovation, and innovation expenditures and firm growth. Preliminary results provide causal interpretations of some previously-observed correlations. Our statistical 'toolkit' could be a useful complement to existing techniques.

R&D DYNAMICS AND FIRM GROWTH: THE IMPORTANCE OF R&D PERSISTENCY IN THE ECONOMIC CRISIS

2019 ◽  
Vol 23 (05) ◽  
pp. 1950049
Author(s):  
HAYOUNG PARK ◽  
TAEWON KANG ◽  
JEONG-DONG LEE
Keyword(s):  
Economic Crisis ◽  
Firm Growth ◽  
Global Financial Crisis ◽  
Firm Level ◽  
Level Data ◽  
The Global Financial Crisis ◽  
The Impact ◽  
D Investment ◽  
High Uncertainty

There has been a lot of interest in R&D dynamics, including the persistency and volatility of R&D investment. However, there is a lack of empirical evidence supporting the impact of R&D dynamics on firm growth in the context of an economic crisis. This study examines the effects of R&D dynamics on firm growth during and after the global financial crisis of 2008–2009. Based on firm-level data, we construct a balanced panel for 1,137 firms in the global petrochemical industry. Our findings indicate that firms with R&D persistency show higher growth during and after the crisis, regardless of firm size. R&D persistency has a higher impact on firm growth in large firms than in smaller ones. In addition, R&D persistency has greater influence than the level of R&D investment. Firms should pursue non-cyclical and consistent R&D strategies with a long-term perspective, especially in high uncertainty conditions.

Sign in / Sign up

Export Citation Format

Share Document