چکیده:
The main objective of this paper is to evaluate the effect of R&D on profitability of high -tech industries with new evidence from the Iranian industries carrying four- digit codes. The Structure- Conduct- Performance (SCP) paradigm, which is relatively well known in industrial economics and in organization management, provides the theoretical construct that guides our empirical model formulation and execution. The data is compiled from observations made at the plant level covering all industrial plants employing ten or more persons and carrying four- digit codes within the time span of 1994-2007. The model used essentially consists of a simultaneous equation system framework grounded into a panel data approach and estimated by Two-Stage Least Squares (2SLS). Our findings indicate a positive and significant effect of R&D expenditures, measured in intensive form, on profitability of high-tech industries as evidenced by the Iranian case. Our more notable finding is the positive effect of lagged profits on R&D expenditure intensity, revealing a likely mutually enforcing relationship between profitability and R&D intensity in high tech industries
خلاصه ماشینی:
"The Structure- Conduct- Performance (SCP) paradigm, which is relatively well known in industrial economics and in organization management, provides the theoretical construct that guides our empirical model formulation and execution.
Our findings indicate a positive and significant effect of R&D expenditures, measured in intensive form, on profitability of high-tech industries as evidenced by the Iranian case.
The Structure- Conduct- Performance (SCP) paradigm, which is relatively well known in industrial economics and in organization management, provides the theoretical construct that guides our empirical model formulation.
Tn a follow up study, Rzakhanov(2004) posed a question asking if markets have a correct estimation of the value of intangible assets in industries with high intensity R&D expenditures, such as biotechnology.
Chen(2011), studying Chinese high tech industries, shows that there is a positive and bi-directional relationship between firms' profitability firms' R&D expenditures.
(رجوع شود به تصویر صفحه) Our parameter estimates (table 4) indicate that the concentration index coefficient in the formulation related to performance is negative and meaningful and that the profit rate is positively related to R&D expenditures.
The lagged concentration index coefficient is positive and significant meaning that the concentration index is driven by its own past values and that the profit rate and R&D expenditures do not have any effect on the concentration index in high tech-industries.
The coefficient of lagged profit rate according to the estimates related to the conduct formulation is positive and meaningful such that aone percent increase in the profit rates of the preceding year leads to about one percent increase in R&D expenditures."