This paper investigates empirically firm investment behavior in research and development (R&D). Firms make investments in R&D in order to produce innovations. These innovations in turn improve the firm's future productivity level, pro tability and incentives to invest in R&D. Using German...

This article investigates how a firm's financial strength affcts its dynamic decision to invest in R&D. We estimate a dynamic model of R&D choice using data for German firms in high-tech manufacturing industries. The model incorporates a measure of the firm's financial strength, derived from its...

Das Zentrum für Europäische Wirtschaftsforschung (ZEW) erhebt seit 1993 im Auftrag des Bundesministeriums für Bildung und Forschung (BMBF) und in Kooperation mit dem Fraunhofer-Institut für System- und Innovationsforschung (ISI) und dem Institut für angewandte Sozialwissenschaften (infas)...