{"title":"The paradox of research and development productivity and firm growth: Empirical evidence from publicly listed firms in the United Kingdom","authors":"Alaa Abed","doi":"10.1111/emre.12647","DOIUrl":null,"url":null,"abstract":"This research aims to investigate the intricate association between research and development (R&D) productivity, specifically assessed through Total Factor Productivity (TFP), and various dimensions of firm growth. Our analysis provides a comprehensive examination of different aspects of growth, including sales, productivity, and employment growth. In addition, we investigate the role of R&D investment in conjunction with R&D productivity to provide clear insights into this multifaceted relationship. Although conventional wisdom suggests a positive relationship between R&D and firm growth, our empirical exploration reveals a more intricate reality. Using 164 non‐financial firms listed on the FTSE 350, our findings indicate that while R&D indeed contributes significantly to firm growth, the nature of this influence is contingent upon the specific dimension of growth under consideration and the adopted empirical models. For example, our baseline model shows a positive relationship between R&D productivity and sales and productivity growth. However, this result does not hold for employment growth. This study makes a substantial contribution to the existing body of research on R&D by illuminating the indirect intricacies of this relationship, offering practical insights for both scholars and industry professionals navigating the complex landscape of R&D‐induced growth within the economic milieu.","PeriodicalId":47372,"journal":{"name":"European Management Review","volume":null,"pages":null},"PeriodicalIF":3.4000,"publicationDate":"2024-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"European Management Review","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1111/emre.12647","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 0
Abstract
This research aims to investigate the intricate association between research and development (R&D) productivity, specifically assessed through Total Factor Productivity (TFP), and various dimensions of firm growth. Our analysis provides a comprehensive examination of different aspects of growth, including sales, productivity, and employment growth. In addition, we investigate the role of R&D investment in conjunction with R&D productivity to provide clear insights into this multifaceted relationship. Although conventional wisdom suggests a positive relationship between R&D and firm growth, our empirical exploration reveals a more intricate reality. Using 164 non‐financial firms listed on the FTSE 350, our findings indicate that while R&D indeed contributes significantly to firm growth, the nature of this influence is contingent upon the specific dimension of growth under consideration and the adopted empirical models. For example, our baseline model shows a positive relationship between R&D productivity and sales and productivity growth. However, this result does not hold for employment growth. This study makes a substantial contribution to the existing body of research on R&D by illuminating the indirect intricacies of this relationship, offering practical insights for both scholars and industry professionals navigating the complex landscape of R&D‐induced growth within the economic milieu.
期刊介绍:
The European Management Review is an international journal dedicated to advancing the understanding of management in private and public sector organizations through empirical investigation and theoretical analysis. The European Management Review provides an international forum for dialogue between researchers, thereby improving the understanding of the nature of management in different settings and promoting the transfer of research results to management practice. Although one of the European Management Review"s aims is to foster the general advancement of management scholarship among European scholars and/or those academics interested in European management issues.