Endogenous Firm Heterogeneity, ICT and R&D Incentives

31 Pages Posted: 6 Apr 2009

See all articles by Daniel Cerquera

Daniel Cerquera

ZEW – Leibniz Centre for European Economic Research

Gordon Klein

University of Iowa - Department of Statistics & Actuarial Science

Date Written: 2008

Abstract

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

Cerquera, Daniel and Klein, Gordon, Endogenous Firm Heterogeneity, ICT and R&D Incentives (2008). ZEW - Centre for European Economic Research Discussion Paper No. 08-126, Available at SSRN: https://ssrn.com/abstract=1373733 or http://dx.doi.org/10.2139/ssrn.1373733

Daniel Cerquera (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Gordon Klein

University of Iowa - Department of Statistics & Actuarial Science ( email )

Iowa City, IA 52242-1409
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
64
Abstract Views
667
rank
409,445
PlumX Metrics