R&D intensity, firm performance and the identification of the threshold: fresh evidence from the panel threshold regression model
This article tests whether there is an optimal level of research and development (R&D) intensity at which point a firm is able to maximize its performance. An advanced panel threshold regression model is employed to investigate the panel threshold effect of R&D intensity on firm performance among publicly traded Taiwan information technology and electronic firms. The results confirm that a single-threshold effect does exist and show an inverted-U correlation between R&D intensity and firm performance. This article demonstrates that it is possible to identify the definitive level beyond which a further increase in R&D expenditure does not yield proportional rewards. Some important policy implications emerge from the findings.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Article Media
Document Type: Research Article
Department of Business Administration, National Chung Hsing University, Taichung, Taiwan
Department of Business Administration, National Chung Hsing University, Taichung, Taiwan,Department of Business Administration, Ling Tung University, Taichung, Taiwan
Department of International Business Studies, National Chi Nan University, Nantou, Taiwan
Publication date: 01 February 2010
More about this publication?