Economic Growth and Dynamic R&D Investment Behavior

2016 ◽  
pp. 243-259
Author(s):  
Ozlem Ozturk Cetenak ◽  
Gurcem Oransay
Keyword(s):  
Economic Growth ◽  
Investment Behavior ◽  
D Investment

scholarly journals Threshold Effect of Economic Growth on Energy Intensity—Evidence from 21 Developed Countries

Energies ◽  
2021 ◽  
Vol 14 (14) ◽  
pp. 4199
Author(s):  
Jinjin Zhou ◽  
Zenglin Ma ◽  
Taoyuan Wei ◽  
Chang Li
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Urban Population ◽  
Energy Intensity ◽  
Developed Countries ◽  
Renewable Energy Consumption ◽  
Tertiary Industry ◽  
D Investment ◽  
Threshold Point

Based on threshold regression models, this paper analyzes the effect of economic growth on energy intensity by using panel data from 21 developed countries from 1996 to 2015. Results show that a 1% increase in GDP per capita can lead to a 0.62–0.78% reduction in energy intensity, implying economic growth can significantly reduce energy intensity. The extent of the reduction in energy intensity varies depending on the economic development stages represented by key influencing factors including energy mix in consumption, urbanization, industrial structure, and technological progress. Specifically, the reduction in energy intensity due to economic growth can be enhanced with relatively more renewable energy consumption and more urban population until a threshold point, where the enhancement disappears. On the other hand, the extent of the energy intensity reduction due to economic growth can be weakened with relatively more tertiary industry activities and more research and development (R&D) investment in an economy until a threshold point, where the weakening cannot continue. However, compared to the early stages represented by the low ends of renewable energy consumption, urban population, tertiary industry activities, and R&D investment, the later stages represented by the high ends of these key factors after a threshold show the weakened effect of economic growth on the decline of energy intensity. Hence, when an economy is well-developed, policy makers are advised to put fewer expectations on the role of economic growth to reduce energy intensity, while pursuing relatively cleaner energy, greater urbanization, more tertiary industry activities, and advanced technologies.

R&D investment behavior of US pharmaceutical firms

2017 ◽  
Vol 9 (2) ◽  
pp. 205-219 ◽  
Author(s):  
Michal Jirásek
Keyword(s):  
Pharmaceutical Industry ◽  
Random Effect ◽  
Investment Behavior ◽  
Theoretical Assumption ◽  
Industry Studies ◽  
Content Type ◽  
Pharmaceutical Firms ◽  
The Us ◽  
Single Industry ◽  
D Investment

Purpose The behavioral theory of the firm (BTOF) has been used to explain the research and development (R&D) investment behavior of firms in numerous multi industry studies. However, their partially contradictory results point to the possible need for a single industry perspective that would reduce heterogeneity of business trends, models and other characteristics. This study aims to test this theoretical assumption within the challenging context of the US pharmaceutical industry. Design/methodology/approach The research uses data from 20 firms, which number among the largest in the US pharmaceutical industry, over the period 2002-2014. These data are analyzed using fixed- and random-effect panel models. Findings The findings generally support the need for a thorough understanding of the industry under study and its specific characteristics. The firms analyzed in this research behave slightly differently from theoretical assumptions, and it is argued that this is caused by industry specific factors. Moreover, the use of two separate aspiration measures – for historical and social aspirations – is supported as it provides more in-depth insight into the firms’ behavior. Originality/value This paper, which is based on research presented at the 4th International Conference on Innovation and Entrepreneurship, represents the first inquiry into the R&D investment behavior of pharmaceutical firms using the BTOF. It also represents an argument for conducting single-industry rather than multi industry studies when using this theory.

scholarly journals R&D Expenditure R&D Expenditure as an Accelerator of Economic Growth with Special Reference to Developing Countries

2021 ◽  
Vol 7 (3) ◽  
Author(s):  
Tariq Mahmood Ali ◽  
Adiqa Kausar Kiani ◽  
Tariq Bashir ◽  
Talah Numan Khan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Developing Economies ◽  
Positive Association ◽  
Estimation Model ◽  
Panel Ardl ◽  
Long Run ◽  
Short Run ◽  
The Impact ◽  
D Investment

Purpose: In this network age, among the other factors which increase economic growth, the R&D activities, a pivotal and effective factor, carried out by a country. The present study attempts to investigate the empirical R&D expenditure-economic growth nexus in developing and developed economies, and also provides useful insight about how R&D investment works to enhance the economic growth of a country. Design/Methodology/Approach: In this regard, 21 years data of top 100 economies of the world from 1995 to 2015 has been utilized. The Panel ARD Model approach has been preferred to explore the impact of R&D investment on economic growth (GDP). For construction of the estimation model, five different variables are used. In order to accomplish the results, along with analysing the data of 100 countries a whole, analysis has also been made by dividing countries into different categories and groups. Overall, the Panel ARDL test has been performed on nine different groups of countries. Findings: The results reveal that, ceteris paribus, there is a strong positive association between R&D expenditure and economic growth (GDP) in the long-run; 1% increase in GERD leads to 0.07% increase in GDP. However, the impact in the developing countries (0.043%) is lower compared to the developed OECD countries (0.27%). No impact of the R&D expenditure on economic growth is observed in the short-run. Implications/Originality/Value: The study presents some thought-provoking ideas, policy recommendations and implications for the policy makers, planners and researchers, especially in the context of developing economies.  

scholarly journals The Effects of Research and Development (R&D) Investments on Sustainable Economic Growth: Evidence from OECD Countries (1996-2015)

2018 ◽  
Vol 18 (1) ◽  
pp. 3-23 ◽  
Author(s):  
Şekip Yazgan ◽  
Ömer Yalçinkaya
Keyword(s):  
Economic Growth ◽  
Panel Data Analysis ◽  
Oecd Countries ◽  
Income Level ◽  
Factor Productivity ◽  
Income Levels ◽  
Growth Performances ◽  
Average Factor ◽  
Sustainable Economic Growth ◽  
D Investment

AbstractThis study is devoted to the empirical analysis by second generation panel data analysis of the effects of the R&D investment variables in different qualifications in OECD countries grouped as OECD-20 and OECD-9 based on the income levels of the economic growth for the period of 1996-2015. Within this context, the purpose of this study is to evaluate whether or not the economic growth performances of OECD-20 and OECD-9 countries have a sustainable structure that endogenizes the technological advancements and occurs by the increments in average factor productivity. At the end of the paper it is determined that all the R&D variables in different qualifications of the OECD-20 group have a higher income level in sample period and have positive and statistically significant effects on the economic growth. On the other hand, only the private sector, universities and the total R&D investments have positive and statistically significant effects on the economic growth of the OECD-9 group which has comparatively lower income level. However, it is specified that the size of the positive and statistically significant effects of the R&D investment variables in different qualifications is more than two times bigger in the OECD-20 group as opposed to the OECD-9 group. These results reveal that the economic performances of OECD-20 countries in the investigated period have a more substantial relation with the qualified and sustainable structure that endogenizes the technologic advancements and occurs by the increments in average factor productivity. All of this shows that the R&D investments also are substantially sufficient to change the long-term economic growth performances and income levels of the countries in OECD-20 and OECD-9 groups.

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