Internationalisation of R&D activities: A boon or bane?

We address this important research gap by comparing the impact of R&D investments and international R&D presence on both short and long term firm performance with particular attention on the firms’ export performance, while controlling for a wide range of variables, including firm size, i...

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Main Authors: Sharma, Piyush, Leung, Tak Yan
Format: Conference Paper
Published: 2020
Online Access:http://hdl.handle.net/20.500.11937/79824
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author Sharma, Piyush
Leung, Tak Yan
author_facet Sharma, Piyush
Leung, Tak Yan
author_sort Sharma, Piyush
building Curtin Institutional Repository
collection Online Access
description We address this important research gap by comparing the impact of R&D investments and international R&D presence on both short and long term firm performance with particular attention on the firms’ export performance, while controlling for a wide range of variables, including firm size, industry type, level of patenting activity etc. We argue that R&D investment would have a stronger positive effect on the long-term (vs. short-term) firm performance and no significant effect on export performance. We also hypothesize that international R&D presence would have a significant stronger positive effect on export performance than on short and longterm firm performance. Using 1,540 firm-year observations from a balanced panel of 385 privately-owned firms in a patent-intensive industry, listed on the Shanghai and Shenzhen stock exchanges, we find support for all our hypotheses. Specifically, R&D investment has a negative effect on short-term performance (profitability), a positive effect on long-term performance (firm value) and no significant effect on export performance. In contrast, international R&D presence has a significantly stronger positive effect on export performance than on short-term and longterm firm performance. We discuss the conceptual contribution and managerial implications of our findings along with their limitations and some useful directions for future research.
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spelling curtin-20.500.11937-798242025-01-17T07:35:01Z Internationalisation of R&D activities: A boon or bane? Sharma, Piyush Leung, Tak Yan We address this important research gap by comparing the impact of R&D investments and international R&D presence on both short and long term firm performance with particular attention on the firms’ export performance, while controlling for a wide range of variables, including firm size, industry type, level of patenting activity etc. We argue that R&D investment would have a stronger positive effect on the long-term (vs. short-term) firm performance and no significant effect on export performance. We also hypothesize that international R&D presence would have a significant stronger positive effect on export performance than on short and longterm firm performance. Using 1,540 firm-year observations from a balanced panel of 385 privately-owned firms in a patent-intensive industry, listed on the Shanghai and Shenzhen stock exchanges, we find support for all our hypotheses. Specifically, R&D investment has a negative effect on short-term performance (profitability), a positive effect on long-term performance (firm value) and no significant effect on export performance. In contrast, international R&D presence has a significantly stronger positive effect on export performance than on short-term and longterm firm performance. We discuss the conceptual contribution and managerial implications of our findings along with their limitations and some useful directions for future research. 2020 Conference Paper http://hdl.handle.net/20.500.11937/79824 restricted
spellingShingle Sharma, Piyush
Leung, Tak Yan
Internationalisation of R&D activities: A boon or bane?
title Internationalisation of R&D activities: A boon or bane?
title_full Internationalisation of R&D activities: A boon or bane?
title_fullStr Internationalisation of R&D activities: A boon or bane?
title_full_unstemmed Internationalisation of R&D activities: A boon or bane?
title_short Internationalisation of R&D activities: A boon or bane?
title_sort internationalisation of r&d activities: a boon or bane?
url http://hdl.handle.net/20.500.11937/79824