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Ratio Working Paper No. 231: The Return to R&D and Seller-buyer Interactions

PublicationWorking paper
Firm performance, Företagandets villkor, Företagsstorlek, Forskning, Hans Seerar Westerberg, Kvantilregression, Produktivitet
Ratio Working Paper No. 231
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Abstract

In this paper we analyze whether a firm’s return to its R&D stock is affected by seller-buyer interactions. We suggest that firms that are in close contact with their customers will be relatively more sensitive to their customers’ needs, and therefore adjust their R&D activities accordingly. This, in turn, will boost sales and increase the return to R&D. To the extent that seller-buyer interactions are costly, large and productive firms will have an advantage in overcoming such costs. We test these hypotheses using a fixed effects quantile regression framework. Results suggest that large firms active in industries characterized by frequent seller-buyer interactions have a higher return to R&D than other firms.

Seerar Westerberg, H. (2014). The Return to R&D and Seller-buyer Interactions: A Quantile Regression Approach. Ratio Working Paper No. 231.


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