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SPANISH DEFENCE SECTOR (2) answer(s).
 
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1
ID:   128837


Drivers of R&D investment in the defence industry: evidence from Spain / Estévez, Javier García; Baute, Elisa Trujillo   Journal Article
Baute, Elisa Trujillo Journal Article
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Publication 2014.
Summary/Abstract This paper analyses the main drivers of R&D investment in the Spanish defence sector at the firm level. In particular, we analyse the factors influencing the decision to innovate or not, and those that affect the relative amount of resources devoted to the innovative process. Using data from the Ministry of Defence and the balance sheets from over 650 companies from 2003 to 2008, a Heckman selection model is applied to account for the firm's decision to perform R&D investment (or not). Our estimation results show that for firms holding operations within the Spanish defence industry, both the long-term strategic decision on R&D engagement and the short-term decision of R&D investment were driven by the intensity of their participation in contracting with the Ministry of Defence; hence, the demand pull hypothesis is confirmed.
        Export Export
2
ID:   128838


Explaining export performance in the Spanish defense industry / Fonfría, Antonio; Brown, Néstor Duch   Journal Article
Brown, Néstor Duch Journal Article
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Publication 2014.
Summary/Abstract This paper presents empirical results on the export performance of Spanish defense contractors. The objective is threefold. First, we briefly describe the export profile of the Spanish defense industry at the firm level. Second, in light of some results on the determinants of firm-level export intensity, we empirically test some of these variables for the case of defense-related exports. We find that exporters tend to be capital intensive, diversified, and showing high R&D effort. In the analysis by sectors, learning by exporting is the most frequent result. Third, we assess the exporter productivity premium, regressing productivity on exporter status and firm size. Our results indicate that when controlling for firm heterogeneity, no such premium exists.
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