2005
DOI: 10.1007/s11187-004-6487-7
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R&D, Size and Firm Growth in Taiwan‘s Electronics Industry

Abstract: This paper documents the relationship between R&D, firm size, and growth rate for a panel data of Taiwanese electronics firms. Using GMM method to control for endogeneity of R&D, the main finding is that an increase in R&D induces a higher growth rate and this impact is particularly higher for small firms. Testing Gibrat’s law shows that small firms indeed have a higher growth rate than their larger counterparts, while size is independent with firm growth in the group of large-sized firms, supporting the weak … Show more

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Cited by 76 publications
(41 citation statements)
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“…We may find many studies, which suggest a positive correlation between innovation measures and employment (Hall, 1987;Van Reenen, 1997;Greenhalgh et al, 2001;Yasuda, 2005;Yang and Huang, 2005;Stare and Damijan, 2015) and other works with a less clear result (Brouwer et al, 1993;Klette and Førre, 1998;Piva and Vivarelli, 2005 There are authors that use also patent data to detect innovation activities. Indeed, Coad and Rao (2011) combine patent and R&D data to explore the relationship between innovation and employment growth in the United States.…”
Section: Literature Reviewmentioning
confidence: 99%
“…We may find many studies, which suggest a positive correlation between innovation measures and employment (Hall, 1987;Van Reenen, 1997;Greenhalgh et al, 2001;Yasuda, 2005;Yang and Huang, 2005;Stare and Damijan, 2015) and other works with a less clear result (Brouwer et al, 1993;Klette and Førre, 1998;Piva and Vivarelli, 2005 There are authors that use also patent data to detect innovation activities. Indeed, Coad and Rao (2011) combine patent and R&D data to explore the relationship between innovation and employment growth in the United States.…”
Section: Literature Reviewmentioning
confidence: 99%
“…Such studies have tended also to focus on more traditional drivers of innovation at firm level, however, such as R&D, ignoring the insights of studies of open innovation (Laursen and Salter 2006). More recent studies have however looked beyond industrial structure itself to also include related scientific or educational institutions along with science parks or enterprise zones (Yang and Huang 2005). This broader perspective is most evident in the literature on sectoral innovation systems which integrates Schumpeterian perspectives on firm size with more institutional and historical perspectives on institutional development and inter-relationships (Daim 2005;Malerba 2004).…”
Section: Knowledge Context -Towards An Integrated Viewmentioning
confidence: 99%
“…Through the adoption of R&D or innovation capacity based indicators (innovations in products, processes, or patent numbers), various research conclude in favour of the positive impact of innovation on firm performance levels (Nolan et al, 1980;Hall, 1987;Amirkhalkhali & Mukhopadhyay, 1993;Singh, 1994;Lefebvre et al, 1998;Del Monte & Papagni, 2003;Nurmi, 2004;Yang & Huang, 2005;Coad & Rao, 2008;Curado, et al, 2011;Reed, et al, 2012). Some researchers find that only the innovation capacity variables impact on the firm performance of Indian firms and not those related to R&D and concluding that indices of R&D expenditure do not contribute towards evaluating firm growth and performance (Geroski, 1995;Geroski et al, 1997;Coad & Rao, 2008;Hölzl, 2009;Cavalcante et al, 2011).…”
Section: Innovation Capacities and Financial Performancementioning
confidence: 99%