Advertising, Innovation, and Economic Growth

Cavenaile, Laurent; Roldan-Blanco, Pau

doi:10.1257/mac.20180461

Cited by 2 publications

(2 citation statements)

References 112 publications

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“…Innovation allows businesses to gain new competitive edges, establish market dominance, and achieve increment returns, serving as a key engine for economic growth (Anning-Dorson, 2018;Cavenaile & Roldan-Blanco, 2021;Sukumar et al, 2020). Due to the high degree of uncertainty surrounding the outcomes of innovative endeavors, a single failed attempt may cause significant profit fluctuations (Amoroso et al, 2017;Holmstrom, 1989).…”

Section: Introductionmentioning

confidence: 99%

Decoding the systemic risk implications of corporate innovation: Evidence from a three‐period game model and a panel data regression

Huang,

Zhu,

Tang

2024

Manage Decis Econ

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How to understand the implications of corporate innovation in integrating economic development and financial stability is of great importance to the academia and the authority. Based on data from Chinese A‐share listed firms during 2007–2021, this study constructs a three‐period game model and a two‐way fixed effects panel regression model to examine the impact of corporate innovation on systemic risk theoretically and empirically. It is found that innovation measured by quantity and investment significantly pushes up corporate systemic risk, and such an effect is stronger in firms facing a more severe principal‐agent issue and in firms with weaker internal governance and external supervision. The effect pertains to the fact that innovation features high innovation risk and low innovation information robustness. Nevertheless, innovation quality manifested by R&D capitalization has a significant depressing effect on firm systemic risk. Additional tests show that inventive innovation strategies have a significant pushing‐up effect on firm systemic risk. Contrarily, non‐inventive innovation strategies are not necessarily related to a lower failure risk and higher innovation information robustness, and impact firm systemic importance and systemic vulnerability inconsistently, causing an undefined effect on firm systemic risk. The study highlights that the authority should scientifically guide enterprises to innovate and focus on improving innovation quality for structuring a balanced system of stabilizing growth and resolving risks.

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Section: Introductionmentioning

confidence: 99%

Decoding the systemic risk implications of corporate innovation: Evidence from a three‐period game model and a panel data regression

Huang,

Zhu,

Tang

2024

Manage Decis Econ

View full text Add to dashboard Cite

show abstract

“…Advertising and R&D, by streamlining the front-end customer interactions and back-end innovation processes, form an inter-dependent reciprocal relationship, thereby reinforcing a firm's operational/technological and marketing capabilities (Askenazy et al. , 2016; Cavenalile and Roldan-Blanco, 2021; Peng et al. , 2018).…”

Section: Introductionmentioning

confidence: 99%

Exploring the synergy between R&D and advertising and firm performance: a neural network approach

Kwon

Lee

Choi

2022

BIJ

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PurposeThis paper explores the nonlinear interactions of research and development (R&D) and advertising and their synergistic effect on firm performance using Tobin's Q. This study also aims to investigate differential synergy patterns under varying levels of exports with a precision impact on performance.Design/methodology/approachUnlike a conventional statistical approach, this study uniquely presents a neural network approach to explore the dynamic interplay of strategic factors. A multilayer perceptron neural network (MPNN) is designed to capture complex interaction patterns through a predictive analytic process.FindingsThis study finds that the impact of R&D and advertising is positive, with a greater effect on high-export firms. Moreover, the experiment results show that the synergy of R&D and advertising goes beyond the formatted positive/negative frame and actually has a reinforcing effect.Practical implicationsThis study not only conveys the significant nexus of R&D and advertising for firm performance but also provides industry managers' practical means to assess the joint effect of R&D and advertising on firm performance. The proposed analytic mechanism in particular provides pragmatic decision support to managers in harmonizing their R&D and advertising efforts for a foreseeable impact.Originality/valueThis paper presents an innovative analytic process using the MPNN to explore the synergy between R&D and advertising. In addition to offering new perspectives on R&D and advertising, this study presents pragmatic implications for managing those strategic resources to meet performance targets.

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Advertising, Innovation, and Economic Growth

Cited by 2 publications

References 112 publications

Decoding the systemic risk implications of corporate innovation: Evidence from a three‐period game model and a panel data regression

Decoding the systemic risk implications of corporate innovation: Evidence from a three‐period game model and a panel data regression

Exploring the synergy between R&D and advertising and firm performance: a neural network approach

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