Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Product development increases productivity only after a few years

16.05.2008
Jyrki Ali-Yrkkö’s dissertation in the field of economics, "Essays on the Impacts of Technology Development and R&D Subsidies,” will be presented at the Helsinki School of Economics on Friday, April 25, 2008.

Is it possible to increase the research and development (R&D) activities of companies by means of public funding? What impact does R&D have on the productivity of companies? These are among the questions that Ali-Yrkkö examines in his dissertation.

Public R&D funding increases company-financed R&D

Technology development and R&D are seen as important elements in the national economy both in Finland and elsewhere in the world. For example, the Lisbon Treaty aims for three percent of the gross national product of EU member countries to be spent on research and development. In Finland the goal is four percent. The majority of R&D activities, however, is largely realized and financed by companies in Finland and other EU countries. Reaching the goals of this policy thus depends on companies and their behavior.

The research material of the dissertation includes information regarding R&D activities of hundreds of companies. The results indicate that public R&D financing does not generally supersede company-financed R&D but rather complements it, in other words it amplifies it. The scale of impact is almost corresponding; one euro of public R&D finance results in a one euro increase in privately financed R&D activities. This additional impact is greater for large companies than for small companies. The study did not indicate that increasing public R&D funding would have a more significant impact on companies with financial constraints than on companies without financial constraints.

International buyers interested in technological know-how

Public R&D financing has also influenced the amount of company human resources, but the resulting increases in personnel have been limited to R&D personnel. According to the research, Tekes funding only affected the amount of R&D personnel. It is possible, however, that influences on other types personnel can only be perceived in the long term.

In addition, Ali-Yrkkö examines the impact of technology development on company productivity. According to the results, by means of research and development companies can increase their productivity, but impacts will be realized only after a few years. It takes, on average, 3-5 years until the result of R&D activities can be observed in company productivity. This long delay in the benefits of R&D activities must also be taken into account in political actions that aim to advance the R&D activities of companies. The relative successfulness of a policy can also be determined only after several years.

The research results demonstrate that technological know-how of a company makes it an attractive target for company investments. Foreign companies especially have shown interest in buying Finnish enterprises with patents. Alternatively, patents do not seem to attract domestic buyers.

Leena Vuorenmaa | alfa
Further information:
http://hsepubl.lib.hse.fi/EN/diss/

More articles from Business and Finance:

nachricht The RWI/ISL-Container Throughput Index started off well in 2018
22.02.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung

nachricht RWI/ISL-Container Throughput Index ending 2017 on a positive note
24.01.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Attoseconds break into atomic interior

A newly developed laser technology has enabled physicists in the Laboratory for Attosecond Physics (jointly run by LMU Munich and the Max Planck Institute of Quantum Optics) to generate attosecond bursts of high-energy photons of unprecedented intensity. This has made it possible to observe the interaction of multiple photons in a single such pulse with electrons in the inner orbital shell of an atom.

In order to observe the ultrafast electron motion in the inner shells of atoms with short light pulses, the pulses must not only be ultrashort, but very...

Im Focus: Good vibrations feel the force

A group of researchers led by Andrea Cavalleri at the Max Planck Institute for Structure and Dynamics of Matter (MPSD) in Hamburg has demonstrated a new method enabling precise measurements of the interatomic forces that hold crystalline solids together. The paper Probing the Interatomic Potential of Solids by Strong-Field Nonlinear Phononics, published online in Nature, explains how a terahertz-frequency laser pulse can drive very large deformations of the crystal.

By measuring the highly unusual atomic trajectories under extreme electromagnetic transients, the MPSD group could reconstruct how rigid the atomic bonds are...

Im Focus: Developing reliable quantum computers

International research team makes important step on the path to solving certification problems

Quantum computers may one day solve algorithmic problems which even the biggest supercomputers today can’t manage. But how do you test a quantum computer to...

Im Focus: In best circles: First integrated circuit from self-assembled polymer

For the first time, a team of researchers at the Max-Planck Institute (MPI) for Polymer Research in Mainz, Germany, has succeeded in making an integrated circuit (IC) from just a monolayer of a semiconducting polymer via a bottom-up, self-assembly approach.

In the self-assembly process, the semiconducting polymer arranges itself into an ordered monolayer in a transistor. The transistors are binary switches used...

Im Focus: Demonstration of a single molecule piezoelectric effect

Breakthrough provides a new concept of the design of molecular motors, sensors and electricity generators at nanoscale

Researchers from the Institute of Organic Chemistry and Biochemistry of the CAS (IOCB Prague), Institute of Physics of the CAS (IP CAS) and Palacký University...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

2nd International Conference on High Temperature Shape Memory Alloys (HTSMAs)

15.02.2018 | Event News

Aachen DC Grid Summit 2018

13.02.2018 | Event News

How Global Climate Policy Can Learn from the Energy Transition

12.02.2018 | Event News

 
Latest News

Basque researchers turn light upside down

23.02.2018 | Physics and Astronomy

Finnish research group discovers a new immune system regulator

23.02.2018 | Health and Medicine

Attoseconds break into atomic interior

23.02.2018 | Physics and Astronomy

VideoLinks
Science & Research
Overview of more VideoLinks >>>