Business R&D Expenditure in the ICT Sector: Effects on Business Performance Indicators

12 Pages Posted: 11 Dec 2019

See all articles by Jan Hunady

Jan Hunady

Faculty of Economics, Matej Bel University in Banska Bystrica, Slovakia

Peter Pisar

Faculty of Economics, Matej Bel University in Banska Bystrica, Slovakia

Ina Durcekova

Faculty of Economics, Matej Bel University in Banska Bystrica, Slovakia

Date Written: September 12, 2019

Abstract

Firms in information and communication (ICT) sector are often considered as an important element of business innovation performance in the economy. This paper is focused on examining their share on innovation and total research and development (R&D) expenditure in selected European countries. Moreover, our goal is to test the potential effect of R&D expenditure on selected business performance indicators. We used panel macro-level data from 24 countries during the years 2008-2016. Based on the results of panel regression analysis we found empirical evidence for the positive effect of R&D expenditure on value-added and apparent labour productivity in the ICT sector. This fact could be to some extent attributed to the innovation of products and processes. The highest share of business R&D expenditure in ICT is present in Nordic countries such as Island, Norway and Finland. Firms in ICT appear to be more above-average innovative and represent a significant share of total business R&D expenditure.

Keywords: usiness R&D expenditure, business innovation, ICT sector, business performance, financial indicators

JEL Classification: O30, G31, M21

Suggested Citation

Hunady, Jan and Pisar, Peter and Durcekova, Ina, Business R&D Expenditure in the ICT Sector: Effects on Business Performance Indicators (September 12, 2019). 2019 ENTRENOVA Conference Proceedings. Available at SSRN: https://ssrn.com/abstract=3492240 or http://dx.doi.org/10.2139/ssrn.3492240

Jan Hunady (Contact Author)

Faculty of Economics, Matej Bel University in Banska Bystrica, Slovakia ( email )

Peter Pisar

Faculty of Economics, Matej Bel University in Banska Bystrica, Slovakia ( email )

Ina Durcekova

Faculty of Economics, Matej Bel University in Banska Bystrica, Slovakia ( email )

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