Abstract
Using an augmented version of Gibrat's law, we theorized and examined the persistence of firm growth when firms increase their research and development (R&D) investment. Using 17 years of data from 1361 firms (616 small and medium-sized enterprises [SMEs] and 745 large firms), this study analyzed the effect of the dynamic interaction between past growth rate and R&D investment on the current growth rate of firms. Based on a quantile regression analysis, study findings suggested that SMEs showed declining growth after high growth. However, we also found that high-growth SMEs that increased their R&D investment could achieve persistence of growth in the following year. Implications are discussed for research, practice, and policy.
| Original language | English |
|---|---|
| Title of host publication | 2017 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2017 |
| Publisher | IEEE Computer Society |
| Pages | 1113-1117 |
| Number of pages | 5 |
| Volume | 2017-December |
| ISBN (Electronic) | 9781538609484 |
| DOIs | |
| Publication status | Published - 2018 Feb 9 |
| Event | 2017 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2017 - Singapore, Singapore Duration: 2017 Dec 10 → 2017 Dec 13 |
Other
| Other | 2017 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2017 |
|---|---|
| Country/Territory | Singapore |
| City | Singapore |
| Period | 17/12/10 → 17/12/13 |
Keywords
- firm growth
- R&D investment
- small and medium-sized enterprises
ASJC Scopus subject areas
- Business, Management and Accounting (miscellaneous)
- Industrial and Manufacturing Engineering
- Safety, Risk, Reliability and Quality
