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Estimating Dynamic R&D Demand: An Analysis of Costs and Long-Run Benefits / Bettina Peters, Mark J. Roberts, Van Anh Vuong, Helmut Fryges.
- Format:
- Book
- Author/Creator:
- Peters, Bettina.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w19374.
- NBER working paper series no. w19374
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Other Title:
- Estimating Dynamic R&D Demand
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2013.
- Summary:
- This paper estimates a dynamic structural model of discrete R&D investment and quantifies its cost and long-run benefit for German manufacturing firms. The dynamic model incorporates linkages between the firm's R&D choice, product and process innovations, and future productivity and profits. The long- run payoff to R&D is measured as the proportional difference in expected firm value generated by the R&D investment. It increases firm value by 6.7 percent for the median firm in high-tech manufacturing industries but only 2.8 percent in low-tech industries. Simulations show that reductions in maintence costs of innovation significantly raise investment rates and productivity while reductions in startup costs have little effect.
- Notes:
- Print version record
- August 2013.
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