From Research to Returns: A Firm-Level Analysis of R&D and Productivity in the Human Health Industry

In the rapidly evolving human health industry, the role of research and development (R&D) is pivotal. This study aims to investigate the relationship between R&D and labor productivity in the pharmaceutical, biotechnology, and medical device industries, collectively referred to as the human...

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Main Authors: Felipe Queiroz Silva, Bernardo Pereira Cabral, Fabio Batista Mota
Format: Article
Language:English
Published: Universidad Alberto Hurtado 2024-10-01
Series:Journal of Technology Management & Innovation
Subjects:
Online Access:https://www.jotmi.org/index.php/GT/article/view/4480
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author Felipe Queiroz Silva
Bernardo Pereira Cabral
Fabio Batista Mota
author_facet Felipe Queiroz Silva
Bernardo Pereira Cabral
Fabio Batista Mota
author_sort Felipe Queiroz Silva
collection DOAJ
description In the rapidly evolving human health industry, the role of research and development (R&D) is pivotal. This study aims to investigate the relationship between R&D and labor productivity in the pharmaceutical, biotechnology, and medical device industries, collectively referred to as the human health industry. Utilizing a comprehensive dataset of 1,106 publicly traded firms with 5,457 observations from various countries between 2011 and 2018 available on the Medtrack proprietary database, we employ econometric techniques, including quantile regressions and dynamic panel estimation using the Generalized Method of Moments. Our findings reveal a positive and statistically significant relationship between R&D and productivity across the sample. Notably, this relationship is more pronounced in large firms based in Asia than in smaller firms in other regions. However, no significant differences in the intensity of this relationship were observed among the industries analyzed. Furthermore, our analysis indicates that R&D spending has an increasing marginal effect on productivity, suggesting that more productive companies experience a greater impact from R&D investment. The study offers robust results on the variable impacts of R&D investments on productivity, providing important insights for stakeholders and suggesting avenues for future research in driving innovation and growth in the human health industry.
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spelling doaj-art-4f052e5a2f6a439a8d00ef023243d4b82025-08-20T02:52:19ZengUniversidad Alberto HurtadoJournal of Technology Management & Innovation0718-27242024-10-0119310.4067/S0718-27242024000300043From Research to Returns: A Firm-Level Analysis of R&D and Productivity in the Human Health IndustryFelipe Queiroz Silva0Bernardo Pereira Cabral1Fabio Batista Mota2Faculty of Administration, Accounting and Economics, Federal University of Goiás, Goiânia, Brazil.Department of Economics, Federal University of Bahia, Salvador, BrazilLaboratory of Cellular Communication, Oswaldo Cruz Institute, Oswaldo Cruz Foundation, Rio de Janeiro, Brazil In the rapidly evolving human health industry, the role of research and development (R&D) is pivotal. This study aims to investigate the relationship between R&D and labor productivity in the pharmaceutical, biotechnology, and medical device industries, collectively referred to as the human health industry. Utilizing a comprehensive dataset of 1,106 publicly traded firms with 5,457 observations from various countries between 2011 and 2018 available on the Medtrack proprietary database, we employ econometric techniques, including quantile regressions and dynamic panel estimation using the Generalized Method of Moments. Our findings reveal a positive and statistically significant relationship between R&D and productivity across the sample. Notably, this relationship is more pronounced in large firms based in Asia than in smaller firms in other regions. However, no significant differences in the intensity of this relationship were observed among the industries analyzed. Furthermore, our analysis indicates that R&D spending has an increasing marginal effect on productivity, suggesting that more productive companies experience a greater impact from R&D investment. The study offers robust results on the variable impacts of R&D investments on productivity, providing important insights for stakeholders and suggesting avenues for future research in driving innovation and growth in the human health industry. https://www.jotmi.org/index.php/GT/article/view/4480Research and Development ProductivityPharmaceutical industryBiotechnology industryMedical devices industry
spellingShingle Felipe Queiroz Silva
Bernardo Pereira Cabral
Fabio Batista Mota
From Research to Returns: A Firm-Level Analysis of R&D and Productivity in the Human Health Industry
Journal of Technology Management & Innovation
Research and Development
Productivity
Pharmaceutical industry
Biotechnology industry
Medical devices industry
title From Research to Returns: A Firm-Level Analysis of R&D and Productivity in the Human Health Industry
title_full From Research to Returns: A Firm-Level Analysis of R&D and Productivity in the Human Health Industry
title_fullStr From Research to Returns: A Firm-Level Analysis of R&D and Productivity in the Human Health Industry
title_full_unstemmed From Research to Returns: A Firm-Level Analysis of R&D and Productivity in the Human Health Industry
title_short From Research to Returns: A Firm-Level Analysis of R&D and Productivity in the Human Health Industry
title_sort from research to returns a firm level analysis of r d and productivity in the human health industry
topic Research and Development
Productivity
Pharmaceutical industry
Biotechnology industry
Medical devices industry
url https://www.jotmi.org/index.php/GT/article/view/4480
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