The persistency and volatility of the firm R&amp;D investment: Revisited from the perspective of technological capability

Tai-ho, Kang; Baek, Chulwoo; Lee, Jeong‐Dong

doi:10.1016/j.respol.2017.07.006

Cited by 81 publications

(66 citation statements)

References 48 publications

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“…Since the emergence of the great importance of endogenous growth theory on human welfare, recent studies in the corporate finance field have shifted towards focusing on capital market imperfection and the financing menu of R&D (Brown & Petersen, 2011;Chen & Guariglia, 2013;Guariglia & Liu, 2014;He & Wintoki, 2016;Kang, Baek, & Lee, 2017;Mina, Lahr, & Hughes, 2013). This trend has resulted from the acknowledgment that R&D is vital for the growth of companies and economies alike.…”

Section: Introductionmentioning

confidence: 99%

Working capital and R&D smoothing: evidence from the Tel Aviv stock exchange

Alkhataybeh

2021

Journal of Applied Economics

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This paper proposes new tests for financing constraints on R&D investment by directly examining the role played by working capital in smoothing the R&D expenditures of firms listed on the Tel Aviv stock exchange. It emphasizes the importance of working capital, not only for use but also as a source of funds. The findings offer new evidence for why levels of liquidity are important for R&Dintensive firms. Working capital alleviates the effects of transient finance shocks on the level of R&D, thereby averting the high adjustment costs that accompany changes in R&D.

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Section: Introductionmentioning

confidence: 99%

Working capital and R&D smoothing: evidence from the Tel Aviv stock exchange

Alkhataybeh

2021

Journal of Applied Economics

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“…"Routine" technological capability is the capability to perform innovation activities with the given requirements, and "innovative" technological capability consists of possessing the technology-changing skills needed to create [30]. Another stream of research has argued that firms in the high technological capability stage attempt to expand R&D investment based on their accumulated capability, while firms in the low technological capability stage show upward rigidity in R&D investment [31]. Therefore, it is widely accepted that there may be different product innovation tasks in different technological capability stages and that the technology management practices required to accomplish these tasks also differ across different technological capability stages.…”

Section: Theoretical Framework and Hypothesesmentioning

confidence: 99%

The Impacts of Technology Management on Product Innovation: The Role of Technological Capability

2020

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Despite the growing importance of management practices, few studies have empirically examined the influence of technology management on product innovation, especially in the presence of technological capability. This paper explores how technology management relates to product innovation through the contingency role of technological capability. The results of correspondence analysis to test the proposed hypotheses showed that the technology management practices that are closely associated with product innovation performance are not identical in different technological capability stages. In the low technological capability stage, information management, equipment management and fund management have greater correlations with product innovation performance; in the medium technological capability stage, human resource management, organization management, quality management and standardized management have greater correlations with product innovation performance; in the high technological capability stage, cultural management, achievement management, and risk management have greater correlations with product innovation performance. The research results theoretically deepen the understanding of how technology management exerts its impact and provide theoretical guidance for the improvement of product innovation performance for firms in different technological capability stages.

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“…Despite the economic crisis, some particular groups of firms, among them the large and established as well as the young and dynamic firms, continued their R&D investments or even increased the budget for R&D (Archibugi/Filippetti/Frenz 2013a, 2013b. Kang/Baek/Lee (2017) in a recent empirical study highlight the fact that firms with a high technological capability maintain R&D spending under a negative shock, and firms with a low technological capability decrease R&D spending.…”

Section: Introductionmentioning

confidence: 99%

Structural stability of the research & development sector in European economies despite the economic crisis

2019

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When an external shock such as the economic crisis in 2008/2009 occurs, the interconnectedness of sectors can be affected. This paper investigates whether the R&D sector experienced changes in its sectoral integration through the recession. Based on an input output analysis, it can be shown that the linkages of the R&D sector with other sectors remain stable. In some countries, the inter-sectoral integration become even stronger. Policy makers can be encouraged to use public R&D spending as a means of fiscal policy against an economic crisis.

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The persistency and volatility of the firm R&D investment: Revisited from the perspective of technological capability

Cited by 81 publications

References 48 publications

Working capital and R&D smoothing: evidence from the Tel Aviv stock exchange

Working capital and R&D smoothing: evidence from the Tel Aviv stock exchange

The Impacts of Technology Management on Product Innovation: The Role of Technological Capability

Structural stability of the research & development sector in European economies despite the economic crisis

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