Estimating R&D Returns In Health Care Industry
Purpose: This paper provides an empirical evaluation of R&D returns for a series of global companies who lead in innovation within the health care industry. Methodology: The estimation procedure bases on two specifications: the parametric production function setting, and finite distributed lag...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Kozminski University
2018-07-01
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| Series: | Journal of Management and Business Administration, Central Europe |
| Subjects: | |
| Online Access: | https://mbace.eu/resources/html/article/details?id=175131 |
| Summary: | Purpose: This paper provides an empirical evaluation of R&D returns for a series of global companies who lead in innovation within the health care industry.
Methodology: The estimation procedure bases on two specifications: the parametric production function setting, and finite distributed lag model (FDL).
Findings: Using the most recent data on R&D investment by health care equipment and services along pharmaceuticals and biotechnology companies, we confirm the positive albeit mitigated impact of R&D efforts on performance indicators (levels of sales). Moreover, we comment on the current phenomena observed in health care industry and offer a policy view for ongoing and future challenges in the sector.
Added value: Since there is a dearth of recent empirical evidence on R&D returns in the broad health industry, this paper offers the evaluation of economic incentives for companies to invest in R&D. These incentives embrace the induced increase in sales and profits levels. The authors participate in a public debate concerning the optimal levels of R&D rewards required to sustain the innovation within the sector. |
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| ISSN: | 2450-7814 2450-8829 |