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Theoretical and Applied Economics
No. 4 / 2019 (621), Winter

Business R&D investments in the EU: Main dynamics and economic effects

Mihaela DIACONU
The “Gheorghe Asachi” Technical University of Iasi, Romania

Abstract. Research and development expenditures are known as drivers of innovation and productivity. This paper aims at investigating two interrelated aspects of business R&D investments in the EU: the main features and trends in business R&D investments and their impact on company′s performance. The results from preceding descriptive analysis on the most recent dynamics in the EU's R&D investments indicate the persistence of several characteristics highlighted also in the literature, such as an increasing business R&D intensity gap between the EU and its main competitors, large differences registered in the total R&D investment intensity across EU countries, sectors and firms and industrial R&D concentration at the level of a few players. The positive impact of R&D investments on company's performance in terms of net sales and operating profit is shown by conducting several econometric models. We also investigate whether the size has an effect on the R&D investments performed by companies exploiting data from the EU industrial R&D investment Scoreboard.

Keywords: company, research and development, EU Scoreboard, innovation, performance.

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The Economicity. The Epistemic Landscape, Marin Dinu, 2016

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