Cited by
- 수출역량강화사업이 수출성과에 미치는 효과연구: 경기지역 창업 중소기업을 중심으로 vol.11, pp.5, 2015, https://doi.org/10.16972/apjbve.11.5.201610.141
Asia pacific journal of information systems
- Volume 25 Issue 1
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- Pages.61-81
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- 2015
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- 2288-5404(pISSN)
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- 2288-6818(eISSN)
DOI QR Code
The Roles and Characteristics of R&D Investment in the IT Firms: IT Hardware Firms vs. IT Software Firms
- Lee, Myunggun (Yeungnam University) ;
- Park, Jongpil (Yonsei Business Research Institute) ;
- Park, Woojin (College of Government and Business, Yonsei University)
- Received : 2014.08.21
- Accepted : 2015.02.11
- Published : 2015.03.31
Abstract
Investment in research and development (R&D) is critical in the information technology (IT) firms, where newer and better technology is a quintessential goal that directly affects innovation and competitive advantage. This study investigates how R&D investment influences firm performance and value, and how the effect of R&D investment differs between IT hardware and software firms. We also analyze the relationship between firm age and R&D investment in order to identify learning effects on continuous R&D investment. The empirical investigation in this study, based on longitudinal archival data from 2001 to 2010, found a significant effect of R&D investment on firm performance in IT firms. Further, this study demonstrates causal relationship between firm age, and verifies that learning effects are present in R&D investment. Moreover, the results are found to differ between IT hardware and IT software firms.