Universität zu Köln

Peters, Bettina ORCID: 0000-0002-8611-2016, Roberts, Mark J. and Fryges, Helmut (2017). Estimating dynamic R&D choice: an analysis of costs and long-run benefits. Rand J. Econ., 48 (2). S. 409 - 438. HOBOKEN: WILEY. ISSN 1756-2171

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Abstract

This article estimates a dynamic structural model of discrete Research and Development (R&D) investment and quantifies its cost and long-run benefit for German manufacturing firms. The model incorporates linkages between R&D choice, product and process innovations, and future productivity and profits. The long-run payoff to R&D is the proportional difference in expected firm value generated by the investment. It increases firm value by 6.7% for the median firm in high-tech industries but only 2.8% in low-tech industries. Simulations show that reductions in maintenance costs of innovation significantly raise investment rates and productivity, whereas reductions in startup costs have little effect.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Peters, Bettina UNSPECIFIED orcid.org/0000-0002-8611-2016 UNSPECIFIED Roberts, Mark J. UNSPECIFIED UNSPECIFIED UNSPECIFIED Fryges, Helmut UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-228708
DOI:	10.1111/1756-2171.12181
Journal or Publication Title:	Rand J. Econ.
Volume:	48
Number:	2
Page Range:	S. 409 - 438
Date:	2017
Publisher:	WILEY
Place of Publication:	HOBOKEN
ISSN:	1756-2171
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language PRODUCTIVITY; INNOVATION Multiple languages Economics Multiple languages
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/22870