The Evolving Contribution of R&D, Advertising and Capital Expenditures for US-listed Firms’ Growth in Sales, 1979-2018. A Quantile Regression Analysis

Abstract

This article presents new insights on the evolving contribution of different types of investments to the growth in sales of US nonfinancial listed firms during the 1979-2018 period. By means of quantile regressions it is observed an increasing contribution over time of intangible investment vis-à-vis a decline in capital expenditure both for high-growth and slow-growth firms. However, the impact of different types of intangible investment differs depending on the kind of firm. Whereas research and development (R&D) has a positive contribution for high-growth firms, only advertising has a positive effect for their slow-growth peers.

Keywords: Firm growth; Fast-growth firms; Quantile Regression; Intangibles.

JEL Classification: E22; L25; O33.