| ID | 177830 |
| Title Proper | Does Optimal R&D Intensity Level Exist in Chinese Defense Enterprises? |
| Language | ENG |
| Author | Su, Chi-Wei |
| Summary / Abstract (Note) | This paper investigates whether there exists an optimal level of research and development (R&D) intensity, at which defense enterprises are able to maximize their market performance. The Panel Threshold Regression Model was applied to probe the link between R&D intensity and sales growth for defense listed enterprises, in China. The empirical results indicate that the Law of Gibrat does not hold and, unlimited input in R&D, does not guarantee positive paybacks. This may lead to the assumption that there is an optimal R&D intensity level in Chinese defense enterprises. Due to the fact that the defense industry has broken entrance barriers and considering the introduction of social capital into R&D activities, managers and top management should set more specific guidelines and provisional benchmarks to ensure effective R&D resource allocation in order to achieve maximum performance. |
| `In' analytical Note | Defence and Peace Economics Vol. 32, No.1; Jan 2021: p.107-124 |
| Journal Source | Defence and Peace Economics Vol: 32 No 1 |
| Key Words | Panel Unit Root ; Threshold ; Panel ; R&D Intensity ; Regression Model ; Law of Gibrat |