Endogenous firm heterogeneity, ICT and R&D incentives

Cequera, Daniel ; Klein, Gordon J.

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URL: http://ub-madoc.bib.uni-mannheim.de/2251
URN: urn:nbn:de:bsz:180-madoc-22514
Document Type: Working paper
Year of publication: 2008
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: D21 L25 O32 ,
Subject headings (SWD): Computerunterstütztes Verfahren , Informationstechnik , Produktivität , Wettbewerbsstrategie , Schumpeter, Joseph Alois , Industrieforschung
Keywords (English): Firm Heterogeneity , Information and Communication Technologies , Creative Destruction , R&D Incentives , Firm Level Data
Abstract: Firm heterogeneity explains the productivity driven selection mechanism that determines aggregate productivity growth within industries. This paper empirically demonstrates that ICT has a robust impact on firm heterogeneity only when ICT is used intensively and jointly with specific ICT applications. ICT induced heterogeneity is shown to have a positive impact on the decision to invest in R&D personnel.
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