TY - JOUR
T1 - Into thin air
T2 - Using a quantile regression approach to explore the relationship between R&D and innovation.
AU - Ebersberger, B
AU - Marsili, Orietta
AU - Reichstein, T.
AU - Salter, A
PY - 2010/1
Y1 - 2010/1
N2 - Applying quantile regression to 760 Finnish firms, we show that the relationship between R&D and firm performance is less straight forward than so far assumed. OLS regression analysis fails to capture the effect of R&D expenditure at different locations on the performance distribution. We reveal that R&D matters, especially on the medium quantiles, while regressing against the upper quantiles of the economic gains from innovation distribution exhibit decreasing returns scale in R&D. Our results confirm that Gaussian statistics fail to capture the most interesting part of the distribution – namely the extreme observations
AB - Applying quantile regression to 760 Finnish firms, we show that the relationship between R&D and firm performance is less straight forward than so far assumed. OLS regression analysis fails to capture the effect of R&D expenditure at different locations on the performance distribution. We reveal that R&D matters, especially on the medium quantiles, while regressing against the upper quantiles of the economic gains from innovation distribution exhibit decreasing returns scale in R&D. Our results confirm that Gaussian statistics fail to capture the most interesting part of the distribution – namely the extreme observations
UR - http://www.scopus.com/inward/record.url?scp=75849116312&partnerID=8YFLogxK
UR - http://dx.doi.org/10.1080/02692170903424448
U2 - 10.1080/02692170903424448
DO - 10.1080/02692170903424448
M3 - Article
SN - 0269-2171
VL - 24
SP - 95
EP - 102
JO - International Review of Applied Economics
JF - International Review of Applied Economics
IS - 1
ER -