R&D demand , innovation , productivity , dynamic structural model
Abstract:
Using firm-level data from the German manufacturing sector, we estimate a dynamic,
structural model of the firm’s decision to invest in R&D and quantify the cost and longrun
benefit of this investment. The model incorporates and quantifies linkages between
the firm’s R&D investment, product and process innovations, and future productivity and
profits. The dynamic model provides a natural measure of the long-run payoff to R&D as
the difference in expected firm value generated by the R&D investment. For the median
productivity firm, investment in R&D raises firm value by 3.0 percent in a group of hightech
industries but only 0.2 percent in low-tech industries. Simulations of the model show
that cost subsidies for R&D can significantly affect R&D investment rates and productivity
changes in the high-tech industries.
Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.
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