Modeling R&D investment decision of ISE listed firms: A sample selection approach


Ucdogruk Y.

IKTISAT ISLETME VE FINANS, vol.25, no.289, pp.29-45, 2010 (SSCI) identifier

  • Publication Type: Article / Article
  • Volume: 25 Issue: 289
  • Publication Date: 2010
  • Doi Number: 10.3848/iif.2010.289.2581
  • Journal Name: IKTISAT ISLETME VE FINANS
  • Journal Indexes: Social Sciences Citation Index (SSCI)
  • Page Numbers: pp.29-45
  • Keywords: R&D, Public support, Sample selection, INNOVATION, MARKET, SPECIFICATION, PRODUCTIVITY, PERFORMANCE, LOCATION
  • Dokuz Eylül University Affiliated: Yes

Abstract

There are a large number of studies on the drivers of R&D investment, only a few of them deal with "selection bias" problem resulting from performers not being a random sample from the population of firms. As most of the firms especially in developing countries like Turkey, due to market failures and underdeveloped financial markets. do not invest in R&D support policies that induce them to overcome this first obstacle also play a critical role. This paper studies the drivers of R&D activities in non-financial firms listed at Istanbul Stock Exchange by using a panel data at the establishment level for the 1998-2007 periods. Our findings suggest that although SMEs are less likely to conduct R&D. they spend proportionally more on R&D than the LSEs. Moreover, public support has a strong effect in raising R&D intensity of R&D performers.