This paper looks at the effects of demand uncertainty and stagnancy on firms' decisions to engage in R&D activities and the amount of financial effort devoted to such activities. In so doing, the paper makes a number of contributions to the innovation literature: first, it adds to the recently...

This paper discusses the link between R&D and productivity across the European industrial and service sectors. The empirical analysis is based on both the European sectoral OECD data and on a unique micro longitudinal database consisting of 532 top European R&D investors. The main conclusions...

In this study we use a unique database covering 25 manufacturing and service sectors for 16 European countries over the period 1996-2005, for a total of 2,295 observations, and apply GMM-SYS panel estimations of a demand-for-labour equation augmented with technology. We find that R&D...