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Title: The relationship between research & development stock of knowledge and firm performance indicators : size, exports and productivity in the UK economy : does investing in R&D pay off, when and for whom?
Author: Stoedinova, Sashka Dragomanova
ISNI:       0000 0004 6063 1218
Awarding Body: University of Birmingham
Current Institution: University of Birmingham
Date of Award: 2017
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Although the ‘endogenous growth’ theory links macroeconomic growth to firms’ R&D, still, there is no comprehensive and conclusive research showing how undertaking R&D affects individual firm performance. Using several market indicators such as size, exports and productivity, this study provides a valuable input in the UK context by analysing a panel of 956 firms during 2003/4 – 2013/14, employing an empirical approach. We find no significant relationship between a firm’s R&D stock of knowledge and its size (measured in terms of both absolute size and size relative to its industry) across ‘All-Firms’ dataset as well as a subset of only highly innovative firms. Employing the Generalised Structural Equation Modelling, we evidence two-way causality between a firm’s R&D stock of knowledge and its exports, both positively affecting each other, depending on firm productivity. In line with Bravo-Ortega et al. (2013), we find that at a firm-level, R&D stock of knowledge affects productivity by two channels; directly and indirectly through export levels. However, we find no evidence of ‘selection’ bias in both export and R&D activities. Contrary to the ‘learning by exporting’ hypothesis, we evidence a negative relationship between a firm’s labour productivity and its export intensity (running in both directions).
Supervisor: Not available Sponsor: Department of Economics ; University of Birmingham
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available
Keywords: HB Economic Theory ; HF Commerce