Is there a state-dependent optimal interval for firms' R&D investment? Evidence from China

被引：0

作者：

Yang, Lixiong ^{[1
,2
]}

Yao, Liangyan ^{[1
]}

Wu, Jianzu ^{[1
]}

机构：

[1] Lanzhou Univ, Sch Management, Lanzhou, Gansu, Peoples R China

[2] Lanzhou Univ, Sch Management, 222 South Tianshui Rd, Lanzhou 730000, Gansu, Peoples R China

来源：

APPLIED ECONOMICS | 2024年

基金：

中国国家自然科学基金;

关键词：

R&D investment; optimal interval; time-varying threshold; firm performance; business cycle; DEVELOPMENT INTENSITY; PRODUCTIVITY GROWTH; PERFORMANCE; THRESHOLD; EXPENDITURES; REGRESSION; RETURNS; IMPACT; INTERNATIONALIZATION; CYCLICALITY;

D O I：

10.1080/00036846.2024.2322576

中图分类号：

F [经济];

学科分类号：

02 ;

摘要：

This study sheds light on the existence of a time-varying and state-dependent optimal interval of research and development (R&D) investment in which firms can maximize the positive effect of R&D on their performance. We develop a panel kink threshold regression model with multiple covariate-dependent thresholds to capture a time-varying optimal interval of R&D investment. Based on the data of A-share listed firms in Shanghai and Shenzhen in China from 2012 to 2020, we provide empirical evidence supporting a state-dependent optimal interval of R&D investment, above or below which R&D is significantly negatively associated with performance. Specifically, the lower bound of the optimal interval (R&D barrier point) is counter-cyclical, while the upper bound of the interval (R&D saturation point) is pro-cyclical. Our study provides a new approach to understand the time-varying and state-dependent threshold effect in the R&D investment, hence contributing to the research and practice of determining the optimal R&D investment.

引用

页数：15