Hall, Bronwyn H.; Hayashi, Fumio - 2021
development. Like investment in physical capital, R&D also responds to news about future prospects of the firm, such as … more years before the capital actually becomes productive, whereas R&D capital is produced jointly as a function of current … overall profitability of the firm, and one to the "productivity" of R&D. In the empirical estimates, we find that these two …