Analyzing Determinants of R&D Intensity in Iranian Manufacturing Firms
Research and development expenditure is a key indicator of resources allocated to science and technological activities, so knowledge about its features and factors underlying firm decision about R&D expenditures have great importance. According to international comparisons, R&D intensity in...
| Main Authors: | , , |
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| Format: | Article |
| Language: | fas |
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Allameh Tabataba'i University Press
2019-01-01
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| Series: | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| Subjects: |
| _version_ | 1797967231328452608 |
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| author | Sahar Rahimi Rad Hassan Heydari Reza Najarzadeh |
| author_facet | Sahar Rahimi Rad Hassan Heydari Reza Najarzadeh |
| author_sort | Sahar Rahimi Rad |
| collection | DOAJ |
| description | Research and development expenditure is a key indicator of resources allocated to science and technological activities, so knowledge about its features and factors underlying firm decision about R&D expenditures have great importance. According to international comparisons, R&D intensity in Iranian manufacturing firms is low compared to developing countries and emerging-market economies. Therefore, the aim of the paper is to analyze factors determining R&D intensity in Iranian manufacturing firms. Using data covering 1995-2014 based on two-digit ISIC data of Iranian manufacturing firms, we have developed a panel-data model to analyze R&D intensity. Our results show that high-tech companies with higher ratio of human resources with tertiary education are more open to foreign trade, have greater size and also have higher ratio of investment to value-added. The results show that profitability of high-tech companies and their value-added growth have no significant effect on their decision to make R&D activities. In mid- and low-technology companies, none of explanatory variables has significant effect on R&D intensity. This shows that these industries in Iran are not developed enough to be sensitive about R&D in their strategies. Based on these results and considering very different variables that affect decisions of companies about R&D, it is necessary to implement different policies for industries with different level of technology. |
| first_indexed | 2024-04-11T02:26:52Z |
| format | Article |
| id | doaj.art-5517792c8a6c4890b15bf2bc8d9fe921 |
| institution | Directory Open Access Journal |
| issn | 1735-210X |
| language | fas |
| last_indexed | 2024-04-11T02:26:52Z |
| publishDate | 2019-01-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| spelling | doaj.art-5517792c8a6c4890b15bf2bc8d9fe9212023-01-02T22:27:03ZfasAllameh Tabataba'i University PressFaslnāmah-i Pizhūhish/Nāmah-i Iqtisādī1735-210X2019-01-011871539010.22054/JOER.2018.9829Analyzing Determinants of R&D Intensity in Iranian Manufacturing FirmsSahar Rahimi Rad 0Hassan Heydari 1Reza Najarzadeh2MSc Alumni in Economics, Tarbiat Modares University, TehranAssistant Professor, Department of Economics, Faculty of Economics & Management, Tarbiat Modares University, Tehran Associate Professor, Department of Economics, Faculty of Economics & Management, Tarbiat Modares University, TehranResearch and development expenditure is a key indicator of resources allocated to science and technological activities, so knowledge about its features and factors underlying firm decision about R&D expenditures have great importance. According to international comparisons, R&D intensity in Iranian manufacturing firms is low compared to developing countries and emerging-market economies. Therefore, the aim of the paper is to analyze factors determining R&D intensity in Iranian manufacturing firms. Using data covering 1995-2014 based on two-digit ISIC data of Iranian manufacturing firms, we have developed a panel-data model to analyze R&D intensity. Our results show that high-tech companies with higher ratio of human resources with tertiary education are more open to foreign trade, have greater size and also have higher ratio of investment to value-added. The results show that profitability of high-tech companies and their value-added growth have no significant effect on their decision to make R&D activities. In mid- and low-technology companies, none of explanatory variables has significant effect on R&D intensity. This shows that these industries in Iran are not developed enough to be sensitive about R&D in their strategies. Based on these results and considering very different variables that affect decisions of companies about R&D, it is necessary to implement different policies for industries with different level of technology.r&d expenditure panel data fixed effect method random effect method |
| spellingShingle | Sahar Rahimi Rad Hassan Heydari Reza Najarzadeh Analyzing Determinants of R&D Intensity in Iranian Manufacturing Firms Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī r&d expenditure panel data fixed effect method random effect method |
| title | Analyzing Determinants of R&D Intensity in Iranian Manufacturing Firms |
| title_full | Analyzing Determinants of R&D Intensity in Iranian Manufacturing Firms |
| title_fullStr | Analyzing Determinants of R&D Intensity in Iranian Manufacturing Firms |
| title_full_unstemmed | Analyzing Determinants of R&D Intensity in Iranian Manufacturing Firms |
| title_short | Analyzing Determinants of R&D Intensity in Iranian Manufacturing Firms |
| title_sort | analyzing determinants of r d intensity in iranian manufacturing firms |
| topic | r&d expenditure panel data fixed effect method random effect method |
| work_keys_str_mv | AT saharrahimirad analyzingdeterminantsofrdintensityiniranianmanufacturingfirms AT hassanheydari analyzingdeterminantsofrdintensityiniranianmanufacturingfirms AT rezanajarzadeh analyzingdeterminantsofrdintensityiniranianmanufacturingfirms |