Cintio, Marco Di; Grassi, Emanuele - Economics and Econometrics Research Institute (EERI) - 2013
This paper examines the effects of uncertainty and flexible labour contracts on the Research and Development (R …&D outlays. Moreover, as predicted by the real options theory, our results suggest that product market uncertainty reduces R …&D efforts and that flexible labour contracts countervail the adverse effect of uncertainty on R&D. …