The impact of R&D expenditures on corporate performance : evidence from Slovenian and world R&D companies

Ravšelj, Dejan (author), Aristovnik, Aleksander (author)

Research and development (R&D) investment is widely recognised as one of the crucial elements of generating the competitive advantage of contemporary companies. At the same time, it is also considered to represent one of the key determinants of overall sustainable development. Global competition, which is becoming increasingly harsh and forces companies to provide value-added products, processes and services, constitutes a reason why R&D investment is indispensable in contemporary business operations as they facilitate keeping the companies' position in the market in terms of their competitiveness. The main aim of this paper is therefore to examine the impact of R&D expenditures on corporate performance. Using a multiple regression analysis, two different panel datasets covering Slovenian and world R&D companies are analysed. This gives a unique opportunity to obtain comprehensive and interesting findings, representing the main originality and value of the paper. The empirical results reveal that R&D expenditures are not effective in the short-term period and bring certain benefits in the long-term period. The findings of this paper provide several important theoretical and practical implications.

• Language: English
• Keywords: R&D expenditures, operating performance, market performance, multiple regression analysis, Slovenia, OECD
• Work type: Article
• Typology: 1.01 - Original Scientific Article
• Organization: FU - Faculty of Administration
• Publication status: Published
• Publication version: Version of Record
• Year: 2020
• Number of pages: 20 str.
• Numbering: Vol. 12, iss. 5, art. 1943
• PID: 20.500.12556/RUL-125573
• UDC: 33
• ISSN on article: 2071-1050
• DOI: 10.3390/su12051943
• COBISS.SI-ID: 5406894
• Publication date in RUL: 26.03.2021

Record is a part of a journal

• Title: Sustainability
• Shortened title: Sustainability
• Publisher: MDPI
• ISSN: 2071-1050
• COBISS.SI-ID: 5324897

Licences

• License: CC BY 4.0, Creative Commons Attribution 4.0 International
• Link: http://creativecommons.org/licenses/by/4.0/
• Description: This is the standard Creative Commons license that gives others maximum freedom to do what they want with the work as long as they credit the author.
• Licensing start date: 03.03.2020

Secondary language

• Language: Slovenian
• Keywords: izdatki za raziskave in razvoj, uspešnost poslovanja, tržna učinkovitost, regresijska analiza panelnih podatkov, Slovenija, OECD

Projects

• Funder: ARRS - Slovenian Research Agency
• Project number: P5-0093
• Name: Razvoj sistema učinkovite in uspešne javne uprave