Firm Characteristics and the Cyclicality of R&D Investments

The aim of this study is to combine micro-aspects of firm behavior with macro aspects of business development and identify market conditions (e.g. price competition) and firm characteristics (e.g. type of R&D partners) that enable a firm to have a pro-cyclical, anti-cyclical, or non-systematic R&D investment behavior. The empirical results confirm to large extent a series of hypotheses as to innovation-relevant firm characteristics that underline the three different behavior categories and allow us to make profiles of the three types of R&D behavior.

[1]  Spyros Arvanitis,et al.  How do different motives for R&D cooperation affect firm performance? – An analysis based on Swiss micro data , 2009, Journal of Evolutionary Economics.

[2]  J. Schumpeter,et al.  Capitalism, Socialism and Democracy , 1943 .

[3]  Elena Huergo,et al.  DOES HISTORY MATTER FOR THE RELATIONSHIP BETWEEN R&D, INNOVATION AND PRODUCTIVITY? , 2011 .

[4]  Philip Mirowski,et al.  Science Bought and Sold , 2002 .

[5]  S. Arvanitis,et al.  Demand And Supply Factors In Explaining The Innovative Activity Of Swiss Manufacturing Firms , 2006 .

[6]  S. Dugal,et al.  Revisiting Corporate R&D Spending During a Recession , 1995 .

[7]  R. Blundell,et al.  Market share, market value and innovation in a panel of British manufacturing firms , 1999 .

[8]  Min Ouyang.  Cyclical Persistence and the Cyclicality of R&D , 2011 .

[9]  Shujie Yao,et al.  On innovative activity over the business cycle: a note , 1998 .

[10]  B. Bernanke,et al.  Agency Costs, Net Worth, and Business Fluctuations , 1988 .

[11]  Openness and Innovation-Home and Export Demand Effects on Manufacturing Innovation: Panel Data Evidence for Ireland and Switzerland , 2008 .

[12]  Min Ouyang,et al.  On the Cyclicality of R&D , 2011, Review of Economics and Statistics.

[13]  Thomas Hatzichronoglou.  Revision of the High-Technology Sector and Product Classification , 1997 .

[14]  Daniele Archibugi,et al.  Innovation in times of crisis: National Systems of Innovation, structure, and demand , 2011 .

[15]  Dominique Guellec,et al.  CAUSES OF FLUCTUATIONS IN R&D EXPENDITURES A QUANTITATIVE ANALYSIS , 1999 .

[16]  Gadi Barlevy,et al.  On the Cyclicality of Research and Development , 2007 .

[17]  A. Kleinknecht,et al.  Keynes-plus? Effective demand and changes in firmlevel R&D , 1997 .

[18]  P. A. Geroski,et al.  Coping with Recession , 1993 .

[19]  P. Geroski,et al.  Innovative Activity over the Business Cycle , 1995 .

[20]  P. Aghion,et al.  Credit Constraints and the Cyclicality of R&D Investment: Evidence from France , 2012 .

[21]  Spyros Arvanitis,et al.  Demand And Supply Factors In Explaining The Innovative Activity Of Swiss Manufacturing Firms: An analysis based on input-, output- and market-oriented innovation indicators: ∗ , 1994 .

[22]  Mark Funk,et al.  The effect of demand shocks on firm-financed R&D , 2004 .

[23]  Philippe Aghion,et al.  VIRTUES OF BAD TIMES Interaction Between Productivity Growth and Economic Fluctuations , 1998, Macroeconomic Dynamics.

[24]  Charles P. Himmelberg,et al.  R&D and internal finance: a panel study of small firms in high-tech industries , 1994 .

[25]  Roy Thurik,et al.  Innovation, Industry Evolution, and Employment , 2010 .

[26]  M. Piva,et al.  Is Demand-Pulled Innovation Equally Important in Different Groups of Firms? , 2006, SSRN Electronic Journal.

[27]  S. Tang.  The link between growth volatility and technical progress: cross-country evidence , 2002 .

[28]  Bronwyn H Hall.  Investment and Research and Development at the Firm Level: Does the Source of Financing Matter? , 1992 .

[29]  Bronwyn H Hall,et al.  Does Cash Flow Cause Investment and R&D?: An Exploration Using Panel Data for French, Japanese, and United States Scientific Firms , 1998 .

[30]  J. Lerner.  INNOVATION, ENTREPRENEURSHIP AND FINANCIAL MARKET CYCLES , 2010 .

[31]  M. Piva,et al.  Demand-pulled innovation under liquidity constraints , 2009 .

[32]  ASYMMETRIC EFFECTS OF THE BUSINESS CYCLE ON FIRM-FINANCED R&D , 2008 .