Does public R&amp;D complement or crowd-out private R&amp;D in pre and post economic crisis of 2008?

Rehman, Naqeeb Ur; Hysa, Eglantina; Mao, Xuxin

doi:10.1080/15140326.2020.1762341

Cited by 29 publications

(16 citation statements)

References 61 publications

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“…This is inspired by Zellner (1962) who argued that SUR estimation using FGLS is an important approach to dealing with cross-sectional dependence in panel regression model. Again, endogeneity of regressors is known to introduce biasness into regression model (Rehman, et al, 2020). To ensure the robustness of the regression model and to deal with the endogeneity in the regression model, Panel Two Stage Least Square (PTSLS) using the one lag period of the regressors and lag dependent variable as instruments.…”

Section: Methodsmentioning

confidence: 99%

FDI Spillover Channel and its Effect on Innovation

Darfo-Oduro

Stejskal

2022

ECKM

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In an increasingly globalized environment, one of the important aspects for knowledge development and usage has been the advantage of benefiting from knowledge spillover across international boundaries. The knowledge literature recognizes the importance of the combining internal and external knowledge in the innovation process. Knowledge spillover from abroad is an important channel of external knowledge needed to complement the innovation activities in the domestic economies of countries. However, the complementarities of external knowledge and domestic innovation activities also remains a thorny issue that remain unresolved in the knowledge literature. On one hand, there is a believe that combinatorial efforts of domestic and foreign knowledge activities are a good recipe for innovation. There are other strands of literature that are concerned that when foreign knowledge is not complementary with domestic innovation activities increased innovation may not be realized. Contrary to the widely held view of the positive impact of FDI on host economies, the literature shows a rather complex relationship between FDI and economic outcomes in V4 countries. OECD countries, being the main trading partners of V4 countries, the study therefore investigates the FDI channel for knowledge spillover from OECD countries and how such knowledge spillover complements V4 countries innovation activities to affect innovation outcomes. Data for the study is panel data on the V4 countries, spanning 2003 to 2012 which is sourced from the OECD database. The study applies panel regression analysis and controls for country and time fixed effect to determine the role of FDI knowledge spillover from OECD countries on innovation outcome in V4 countries. The findings of the study indicate that proportionate change in innovation is greater than a proportionate change in FDI knowledge spillover in the opposite direction. The results of the analysis show that knowledge spillover from FDI does not complement V4 countries’ internal R&D activities to improve innovation. FDI knowledge spillover channel is not a good complement to domestic R&D activities to enhance V4 countries’ innovation performance. It is concluded that, FDI knowledge spillover channel does not complement innovation activities to improve innovation outcome. The study provides useful practical implications and recommendations.

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Section: Methodsmentioning

confidence: 99%

FDI Spillover Channel and its Effect on Innovation

Darfo-Oduro

Stejskal

2022

ECKM

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“…For instance, firms operating in manufacturing are more likely to export than firms operating in the service sector. Innovation and technology in the industry are also important factors that differentiate firms [87,88]. Innovation gives firms competitive advantages and increases their survival in international markets.…”

Section: Industry Dummy Variablesmentioning

confidence: 99%

Internationalization of Large Companies from Central and Eastern Europe or the Birth of New Stars

et al. 2021

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With rapid globalization, firm internationalization has become an important corporate strategy as well as the necessity for the survival and growth of the business. In the last decade, there has been a growth in literature that studies this field, especially in emerging countries. However, there exists a gap in the literature in CEE countries. This study aims to fill that gap by conducting an analysis and providing insight regarding the factors that lead to an increase in firm internationalization in this region. This research paper studies the main determinants that have an impact on the firm internationalization of large companies in CEE countries using panel data empirical methods, such as the random effect model and generalized method of moments (GMM) model for a panel of 50 firms from 11 CEE countries and a time duration of 14 years. This study determines the main factors that positively influence firm internationalization in selected countries. These countries have experienced a radical transition from centrally planned economies to market economies, and although they have experienced economic growth and a rise in productivity, they are still facing several challenges. Therefore, it is important to know what facilitates and helps firms to expand in international markets. The main findings derived from this study show that firm characteristics, such as age, size and corporate performance, have a positive effect on the internationalization process. An increase in age, size and firm performance leads to higher levels of internationalization. Larger and relatively older firms have access to more resources and are more experienced in dealing with the environmental difficulties characteristic of these countries.

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“…Research on enterprise innovation has gained traction in recent years. According to Schumpeter's theory, big rms are more innovative as there are returns to scale in R&D among large rms (Schumpeter, 1942), implying that the developed economies are more likely to have an appropriate climate for innovation rather than the developing countries (Rehman et al, 2020). Moreover, a strong economy and wellestablished institutions can be the key determinants of an innovation climate (Alfaro et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

Environmental protection investment and enterprise innovation: evidence from Chinese listed companies

Jiang

Akbar

Hysa

et al. 2022

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PurposeChina has emerged as the world's second-largest economy due to rapid industrial expansion and phenomenal economic growth of China in recent decades. Though, this exponential economic turnaround has been fueled by widespread energy consumption, making China among the largest pollutant emitters in the world. Chinese enterprises have come under greater scrutiny and the Government has mandated Chinese companies to undertake environmental protection investment. This study aims to explore the relationship between environmental protection investment and enterprise innovation by taking evidence from Chinese listed firms.Design/methodology/approachThe data of 2,568 Chinese A-share listed firm-year observations were collected from the Shanghai and Shenzhen stock exchanges during 2008–2016. This study employed ordinary least square and panel data fixed effects techniques to ascertain the association between proposed variables.FindingsThe authors' findings conjecture the crowding-out effects of environmental investments on enterprise innovation-related expenditures. Furthermore, additional empirical testing reveals that Research and Development (R&D) undertakings of state-owned and politically connected enterprises are not affected by environmental investments. Likewise, corporate innovation activities are not negatively influenced by environmental investments in polluting industries. The study findings offer fresh insights to regulators, corporate managers and stakeholders. The authors' results are robust to alternate econometric specifications and alternate variable specifications.Originality/valueThis study makes the following contributions toward the extant literature. First, the study investigates if there is a crowding-out effect of spending on environmental protection in the current period and the innovation expenditure in the upcoming period. Empirical results confirm that there exists a trade-off between both types of spending, implying that the spending on environmental protection will negatively influence the spending on innovation. Second, the study deepens the analysis in considering other influences in this relationship. For instance, the authors' separately consider the aforementioned trade-off in state-owned enterprises and non-state-owned enterprises. The study also examines the mediating influence of corporate political connections and industry attributes, whether or not these influence the relationship between the actual spending on environmental protection and the upcoming spending on innovation.

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Does public R&D complement or crowd-out private R&D in pre and post economic crisis of 2008?

Cited by 29 publications

References 61 publications

FDI Spillover Channel and its Effect on Innovation

FDI Spillover Channel and its Effect on Innovation

Internationalization of Large Companies from Central and Eastern Europe or the Birth of New Stars

Environmental protection investment and enterprise innovation: evidence from Chinese listed companies

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