Empirical modeling of R&D demand in a dynamic framework

Mark John Roberts, Van Anh Vuong

Research output: Contribution to journalArticle

6 Citations (Scopus)

Abstract

Empirical analysis of firm-level investment in research and development (R&D) and its effect on innovation patterns and productivity has advanced as a result of innovation surveys in many countries. The weak link in the analysis of these surveys is the empirical model of firm R&D choice. In this paper we summarize how a dynamic, structural model of firm investment can be used to estimate firm demand for R&D with the data collected in innovation surveys. The estimates provide a natural measure of the expected benefit to the firm of investing in R&D. They also allow the researcher to simulate how the firm's R&D investment will respond to factors that shift cost or demand such as a policy change designed to subsidize R&D expenditures or provide financial support to firms with less favorable access to capital markets.

Original languageEnglish (US)
Pages (from-to)185-205
Number of pages21
JournalApplied Economic Perspectives and Policy
Volume35
Issue number2
DOIs
StatePublished - Jun 1 2013

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firm
demand
modeling
innovation
capital market
empirical analysis
Empirical modeling
structural model
research and development
expenditure
expenditures
productivity
costs
Innovation surveys
cost
Policy change
Productivity
Capital markets
Costs
Empirical analysis

All Science Journal Classification (ASJC) codes

  • Development
  • Economics and Econometrics

Cite this

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Empirical modeling of R&D demand in a dynamic framework. / Roberts, Mark John; Vuong, Van Anh.

In: Applied Economic Perspectives and Policy, Vol. 35, No. 2, 01.06.2013, p. 185-205.

Research output: Contribution to journalArticle

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