Business R&D Expenditure in the ICT Sector: Effects on Business Performance Indicators
Klíčová slova:
business R&D expenditure, business innovation, ICT sector, business performance, financial indicatorsAbstrakt
Firms in information and communication (ICT) sector are often considered as an important element of business innovation performance in the economy. This paper is focused on examining their share on innovation and total research and development (R&D) expenditure in selected European countries. Moreover, our goal is to test the potential effect of R&D expenditure on selected business performance indicators. We used panel macro-level data from 24 countries during the years 2008-2016. Based on the results of panel regression analysis we found empirical evidence for the positive effect of R&D expenditure on value-added and apparent labour productivity in the ICT sector. This fact could be to some extent attributed to the innovation of products and processes. The highest share of business R&D expenditure in ICT is present in Nordic countries such as Island, Norway and Finland. Firms in ICT appear to be more above-average innovative and represent a significant share of total business R&D expenditure.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Reference
Agramunt, L. F., Berbel-Pineda, J. M. (2018), “The positive moderating effect of absorptive capacity on R&D investment: the case of Argentina’s ict firms”, Annals of the Brazilian Academy of Sciences, Vol. 90, No. 3, pp. 3207-3221.
Akcali, B. Y., Sismanoglu, E. (2015), “Innovation and the Effect of Research and Development (R&D) Expenditure on Growth in Some Developing and Developed Countries”, Procedia – Social and Behavioral Sciences, Vol. 195, pp. 768-775.
Álvarez, R. (2016), “The Impact of R&D and ICT Investment on Innovation and Productivity in Chilean Firms”, Working Paper No. 428, University of Chile, Department of Economics.
Apergis, N., Sorros, J. (2014), “The Role of R&D Expenses for Profitability: Evidence from U.S. Fossil and Renewable Energy Firms”, International Journal of Economics and Finance, Vol. 6, No. 3, pp. 8-15.
Ayaydin, H., Karaaslan, I. (2014), “The effect of research and development investment on firms’ financial performance: Evidence from manufacturing firms in Turkey”, The Journal of Knowledge Economy & Knowledge Management, Vol. 9, No. 2, pp. 43-59.
Conarella, G., Miller, S. M. (2018), “The determinants of growth in the U.S. information and communication technology (ICT) industry: A firm-level analysis”, Economic Modelling, Vol. 70, pp. 259-271.
Das, A., Kapil, S. (2015), “The Role of Technological Innovation in Managing Through Business Cycles: A Study on Indian ICT Firms”, in Chatterjee, S., Singh, N. P., Goyal, D. P., Gupta, N. (Eds.), Managing in Recovering Markets, Springer India, pp. 427-439.
Edquist, H., Henrekson, M. (2017), “Swedish lessons: How important are ICT and R&D to economic growth?”, Structural Change and Economic Dynamics, Vol. 42, pp. 1-12.
Estrada, I., Dong, J. Q. (2019), “Learning from Experience? Technological Investments and the Impact of Coopetition Experience on Firm Profitability”, Long Range Planning, In press.
Gumus, E., Celikay, F. (2015), “R&D Expenditure and Economic Growth: New Empirical Evidence”, Margin – The Journal of Applied Economic Research, Vol. 9., No. 3, pp. 205-217.
Hall, B. H., Lotti, F., Mairesse, J. (2013), “Evidence on the impact of R&D and ICT investments on innovation and productivity in Italian firms”, Economics of Innovation and New Technology, Vol. 22, No. 3, pp. 300-328.
Hanna, N. K. (2009), Enabling Enterprise Transformation, Springer, New York.
Khanna, R., Sharma, C. (2018), “Testing the effect of investments in IT and R&D on labour productivity: New method and evidence for Indian firms”, Economic Letters, Vol. 173, pp. 30-34.
Koutroumpis, P., Thomas, L. D. W. (2019), “Small is big in ICT: the impact of R&D on productivity”, Telecommunications Policy, In Press.
Lee, H. S., Mun, H. W., Lee, S.-Y. (2018), “Profitability Determinants of Information Technology Software Companies in Malaysia”, Advanced Science Letters, Vol. 24, No. 2, pp. 1514-1518.
Manjón, J. V. G., Mompó, R., Redoli, J. (2016), “Accelerating Innovation in Small and Medium-Sized Enterprises in the ICT Services Sector”, SAGE Open, Vol. 6, No. 3.
Martin, L., Nguyen-Thi, T. U. (2015), “The Relationship Between Innovation and Productivity Based on R&D and ICT Use”, Revue Économique, Vol. 66, No. 6, pp. 1105-1130.
Mithas, S., Tafti, A. R., Bardhan, I., Goh, J. M. (2012), “Information Technology and Firm Profitability: Mechanisms and Empirical Evidence”, MIS Quarterly, Vol. 36, No. 1, pp. 205-224.
Park, J. H., Lee, B., Moon, Y. H., Kim, G., Kwon, L. N. (2018), “Relation of R&D expense to turnover and number of listed companies in all industrial fields”, Journal of Open Innovation: Technology, Market and Complexity, Vol. 4, No. 1.
Pieri, F., Vecchi, M., Venturini, F. (2018), “Modelling the joint impact of R&D and ICT on productivity: A frontier analysis approach”, Research Policy, Vol. 47, No. 9, pp. 1842-1852.
Sepehrdoust, H. (2018), “Impact of information and communication technology and financial development on economic growth of OPEC developing economies”, Kasetsart Journal of Social Sciences, In press.
Shen, K.-Y., Yan, M.-R., Tzeng, G.-H. (2017), “Exploring R&D Influences on Financial Performance for Business Sustainability Considering Dual Profitability Objectives”, Sustainability, Vol. 9, No. 11.
Schröder, C. (2012), “Differences between High Growth and Low Growth ICT Firms in Germany”, in Welfens, P. J. J. (Ed.), Clusters in automotive and information & communication technology: Innovation, multinationalization and networking dynamics, Springer, Berlin, pp. 135-183.
Stejskal, J., Hajek, P., Prokop, V. (2018), “Collaboration and innovation models in information and communication creative industries – the case of Germany”, Journal of Information and Communication Technology, Vol. 17, No. 2, pp. 191-208.
Tolica, E. K., Sevrani, K., Gorica, K. (2015), Information Society Development through ICT Market Strategies, Springer, Cham.
VanderPal, G. A. (2015), “Impact of R&D Expenses and Corporate Financial Performance”, Journal of Accounting and Finance, Vol. 15, No. 7, pp. 135-149.
Warusawitharana, M. (2015), “Research and development, profits and firm value: A structural estimation”, Quantitative Economics, Vol. 6, No. 2, pp. 531-565.
