Publication detail

Heterogeneity of Returns to Business R&D: What Does Make a Difference?

Author(s): Petr Pleticha ,
Type: IES Working Papers
Year: 2019
Number: 32
Published in: IES Working Papers 32/2019
Publishing place: Prague
Keywords: R&D returns, spillovers, Czechia
JEL codes: O32, O33, O47, L14
Suggested Citation: Pleticha P. (2019): "Heterogeneity of Returns to Business R&D: What Does Make a Difference?" IES Working Papers 32/2019. IES FSV. Charles University
Abstract: Business R&D spending has been showed to exert a positive direct as well as indirect, spillover effects on value added. Nevertheless, heterogeneity of the returns to R&D has been seldom 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 the 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 profess such non-linearity. The heterogeneity of returns to business R&D needs to be reflected in the design of innovation policy.
Downloadable: wp_2019_32_pleticha




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