The Role of R&D Investments in Czech firms of the Electronics Industry

abstrakt

angličtina

Purpose of the article The paper describes the impact of R&D expenditures on the economic performance and competitiveness of Czech electronic firms. The data are available for the time frame from 2007 to 2014. The authors study the relationship between R&D expenditures and the profitability ratios ROS and ROA. Methodology/methods This paper uses Czech Statistical R&D Database and The Amadeus Bureau Van Dijk Electronic Publishing Database as data source. This data source is adapted for 89 Czech firms with information on employees, operating revenue, profitability ratios, sector affiliation and time to invest to R&D. The sample includes small, medium and large companies. Statistical analysis is performed using nonparametric Mann-Whitney U test and developed along two testing hypotheses. Scientific aim This paper aims to examine the long-term structure of the impact of R&D investments on profitability ratios, indicating differences between annual and occassion research activities. The main questions are whether R&D investments acompany firms' economic performance in the subsequent periods and how this relationship depends on other characteristic of the firms, such as size. Findings The authors find that R&D expenditures and annual activities, in most cases, have a positive effect on operating revenue and profitability ratios. The relationship between economic performance and its temporal structure depend on firm size as well as whether investments are considered as annual or occasional research activities. The nonparametric Mann-Whitney test is showing a statistically significant difference between medi-ans of profitability ratios of SME and large companies. Conclusions The study is focused on the long-term structure of the influence of firm characteristics on operating revenue growth, especially the impact of R&D investments. The investigation has certain limitations that some further studies may be able to fix. The construction and research of other ratios may give a more reliable signal-ing efficiency to latent constructs.

Firm’s size, economic performance, Mann-Whitney test, R&D investmens, market share

BOČKOVÁ, N.; MELUZÍN, T.

20. 5. 2016

21st International Scientific Conference ICEM 2016

Brno

978-80-214-5355-5

Programme and _Collected Abstracts of the 21st International Scientific Conference ICEM 2016

Smart and Efficient Economy: Preparation for the Future Innovative Economy

106

106

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