| Author(s): |
Petr Pleticha ,
|
| Type: |
Articles in journals with impact factor |
| Year: |
2021 |
| Number: |
0 |
| ISSN / ISBN: |
|
| Published in: |
Prague Economic Papers |
| Publishing place: |
Praha |
| Keywords: |
R&D returns, spillovers, Czechia |
| JEL codes: |
O32, O33, O47, L14 |
| Suggested Citation: |
Petr Pleticha, . "Heterogeneity of Returns to Business R&D: What Makes a Difference?," Prague Economic Papers, Prague University of Economics and Business, vol. 0. |
| Abstract: |
Business R&D spending has been shown to exert both direct and indirect positive effects on value added. Nevertheless, the heterogeneity of the returns to R&D has seldom been examined. Using detailed sectoral data from Czechia over the period 1995-2015, this study finds that privately funded business R&D has both direct and spillover effects, but that the publicly funded part of business R&D only leads to spillovers. The results further suggest that both upstream and downstream spillovers matter, regardless of the source of funding, and that during the period studied, R&D returns were heavily affected by the economic crisis. Lastly, private R&D offers significant returns only after reaching a critical mass, while the effects of public R&D spending do not display such non-linearity. This heterogeneity in the returns to business R&D should be reflected in innovation policy design.
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