Effects of R&D spending on innovation by Irish and foreign-owned businesses
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Date
2013
Authors
Doran, Justin
Jordan, Declan
O'Leary, Eoin
Journal Title
Journal ISSN
Volume Title
Publisher
Statistical and Social Inquiry Society of Ireland
Published Version
Abstract
This paper estimates the private returns to four different kinds of R&D spending on the probability of Irish and foreign-owned businesses engaging in product, process and organizational innovation. By providing econometric analysis of the Community Innovation Survey: 2004 to 2006, it makes an important contribution to our understanding of the effects of Irish innovation policy, which has incentivized businesses to spend on R&D. The main findings are that Irish-owned businesses are significantly more likely than foreign-owned to introduce new products as a result of creative R&D work undertaken. Foreign-owned businesses, which spend nearly 6 times more per worker on R&D than Irish-owned, enjoy very high returns mostly from the purchase or licence of patents. This reflects a fundamental difference in the innovation activities of these businesses, which is critical for policymakers' understanding of the Irish innovation system.
Description
Keywords
Innovation policy , Innovation output , Research and development , Research & development
Citation
Doran, J., Jordan, D. and O'Leary, E. (2013) 'Effects of R&D spending on innovation by Irish and foreign-owned businesses', Journal of the Statistical and Social Inquiry Society of Ireland, Vol. XLII, 2013, pp. 15-41.