Peters, Bettina; Roberts, Mark J.; Vuong, Van Anh - 2015
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 … estimates of the costs and expected long-run benefits from R&D investment. Financially strong firms have a higher probability of …