Impacts of internal R&D on firms’ performance and energy consumption: Evidence from Ethiopian firms
In recent decades, with the rapid development of the knowledge economy and science, countries have embraced technical innovation and have gradually increased investment in research and development (R&D). A vast literature indicates that the relationship between R&D and firm performance is hi...
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| Format: | Article |
| Language: | English |
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KeAi Communications Co., Ltd.
2023-03-01
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| Series: | International Journal of Innovation Studies |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2096248722000443 |
| _version_ | 1797867675805810688 |
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| author | Tsegaye Mulugeta Habtewold |
| author_facet | Tsegaye Mulugeta Habtewold |
| author_sort | Tsegaye Mulugeta Habtewold |
| collection | DOAJ |
| description | In recent decades, with the rapid development of the knowledge economy and science, countries have embraced technical innovation and have gradually increased investment in research and development (R&D). A vast literature indicates that the relationship between R&D and firm performance is highly complex. The evidence suggests that R&D positively influences firm performance, yet findings on the process by which this happens are mixed. Rigorous analyses are required on how R&D investments affect energy consumption. This study explores the impact of R&D investment on the performance and energy consumption of 476 firms in Ethiopia by employing a combination of fixed-effect, propensity score matching, and endogenous treatment effect estimation methods. The empirical results reveal that investment in R&D positively influences both innovation and long-term financial performance but negatively impacts short-term financial performance and energy consumption. The results also show that the impacts of R&D activities vary significantly across different categories of firms, confirming that heterogeneity may be an issue among the firms considered. The results also indicate that the availability of credit is a more important moderating factor in the relationship between R&D investment and firm performance than the legal system is. These results have important implications for firms with growing R&D operations, especially those in developing countries such as Ethiopia. Ethiopian firms should invest more in R&D activities, such as in fundamental and applied research, to improve performance and enhance competitiveness. |
| first_indexed | 2024-04-09T23:43:56Z |
| format | Article |
| id | doaj.art-9bca8bfd11674f2daa763f9552b832a8 |
| institution | Directory Open Access Journal |
| issn | 2096-2487 |
| language | English |
| last_indexed | 2024-04-09T23:43:56Z |
| publishDate | 2023-03-01 |
| publisher | KeAi Communications Co., Ltd. |
| record_format | Article |
| series | International Journal of Innovation Studies |
| spelling | doaj.art-9bca8bfd11674f2daa763f9552b832a82023-03-18T04:40:53ZengKeAi Communications Co., Ltd.International Journal of Innovation Studies2096-24872023-03-01714767Impacts of internal R&D on firms’ performance and energy consumption: Evidence from Ethiopian firmsTsegaye Mulugeta Habtewold0Adama Science and Technology University, P.O.Box 1888, Adama, EthiopiaIn recent decades, with the rapid development of the knowledge economy and science, countries have embraced technical innovation and have gradually increased investment in research and development (R&D). A vast literature indicates that the relationship between R&D and firm performance is highly complex. The evidence suggests that R&D positively influences firm performance, yet findings on the process by which this happens are mixed. Rigorous analyses are required on how R&D investments affect energy consumption. This study explores the impact of R&D investment on the performance and energy consumption of 476 firms in Ethiopia by employing a combination of fixed-effect, propensity score matching, and endogenous treatment effect estimation methods. The empirical results reveal that investment in R&D positively influences both innovation and long-term financial performance but negatively impacts short-term financial performance and energy consumption. The results also show that the impacts of R&D activities vary significantly across different categories of firms, confirming that heterogeneity may be an issue among the firms considered. The results also indicate that the availability of credit is a more important moderating factor in the relationship between R&D investment and firm performance than the legal system is. These results have important implications for firms with growing R&D operations, especially those in developing countries such as Ethiopia. Ethiopian firms should invest more in R&D activities, such as in fundamental and applied research, to improve performance and enhance competitiveness.http://www.sciencedirect.com/science/article/pii/S2096248722000443D21D92L25M10O32Q4 |
| spellingShingle | Tsegaye Mulugeta Habtewold Impacts of internal R&D on firms’ performance and energy consumption: Evidence from Ethiopian firms International Journal of Innovation Studies D21 D92 L25 M10 O32 Q4 |
| title | Impacts of internal R&D on firms’ performance and energy consumption: Evidence from Ethiopian firms |
| title_full | Impacts of internal R&D on firms’ performance and energy consumption: Evidence from Ethiopian firms |
| title_fullStr | Impacts of internal R&D on firms’ performance and energy consumption: Evidence from Ethiopian firms |
| title_full_unstemmed | Impacts of internal R&D on firms’ performance and energy consumption: Evidence from Ethiopian firms |
| title_short | Impacts of internal R&D on firms’ performance and energy consumption: Evidence from Ethiopian firms |
| title_sort | impacts of internal r d on firms performance and energy consumption evidence from ethiopian firms |
| topic | D21 D92 L25 M10 O32 Q4 |
| url | http://www.sciencedirect.com/science/article/pii/S2096248722000443 |
| work_keys_str_mv | AT tsegayemulugetahabtewold impactsofinternalrdonfirmsperformanceandenergyconsumptionevidencefromethiopianfirms |