Business and Economics Journal

Effectiveness of Business R&D in Emerging Economies; the Review of Research Evidence

Abstract

Marek Martin

This paper is aiming to summarize the research effort executed in the field of effectiveness of business research and development activities in the case of emerging economies. The initial quantitative research was carried out on the basis of econometric estimations of Cobb-Douglas production function. Two dependent variables were examined and both lagged and non-lagged effectiveness of various types of innovative business expenditures of manufacturing enterprises located in Poland. The survey is based on relatively large data basis obtained from public statistics (The Central Statistical Office). This paper was prepared by invitation from the editorial committee of Business and Economics Journal and summarizes the to date effort in the field of effectiveness of business R&D and innovation effort in the case of Poland as the example of an emerging economy. In general the review of the research work indicates the positive impact of business R&D (both internal and external) on relative sales and relative EBIDT (as profit proxy) growth. The positive impact of business R&D on relative EBIDT growth seems to be more consistent in terms of statistical significance.