About 20 percent of the gross investment expenditures of U.S. manufacturing firms is expenditures on research and … development. Like investment in physical capital, R&D also responds to news about future prospects of the firm, such as … types of investment to changes in the value of the firm's assets as perceived by financial markets and the interaction of …

causal relationship among sales and cash flow on the one hand and investment and R&D on the other, using three large panels … of firms in the scientific (high technology) sectors in the United States, France, and Japan. Our findings are that both … investment and R&D are more highly sensitive to cash flow and sales in the United States than in France and Japan. Corresponding …

This paper is a contribution to the small but growing literature that compares the investment and R&D behavior of … of a simple error-corrected investment model for both ordinary investment and for R&D investment, a model that … incorporates both output (sales or turnover) and cash flow as predictors for investment. Our focus is on two comparisons: France …