Endogenous Firm Heterogeneity, ICT and R&D Incentives
31 Pages Posted: 6 Apr 2009
Date Written: 2008
Firm heterogeneity explains the productivity driven selection mechanism that determines aggregate productivity growth within industries. This paper empirically demonstrates that ICT has a robust impact on firm heterogeneity only when ICT is used intensively and jointly with specific ICT applications. ICT induced heterogeneity is shown to have a positive impact on the decision to invest in R&D personnel.
Keywords: Firm Heterogeneity, Information and Communication Technologies, Creative Destruction, R&D Incentives, Firm Level Data
JEL Classification: D21, L25, O32
Suggested Citation: Suggested Citation