The Effect of Firm’s Leading Level on the Relationship Between R&D Investment and Future Performance

초록

This study analyzes the impact of R&D investment on future performance according to industry leadership level. R&D investment is advantageous for firms with ample funds due to characteristics such as time lag, high cost, and uncertainty. Leading firms are more likely to raise funds and use more money than Followers, so they will try to maintain the advantages of leaders such as maintaining market share and increasing profitability through R&D investment. Therefore, R&D investment of leaders will have a more positive impact on future performance than followers. The results of analysis are as follows. First, the R&D investments of leaders had more positive effects on future profitability than those of followers, and had significant effects on future profitability three years later. Second, the R&D investments of leaders had more positive effects on future productivity than those of followers. In addition, the results of analysis conducted after dividing industries into high-tech industries and low-tech industries were similar to those of the main analysis. This study is meaningful in that it has found that R&D investment has a discriminatory effect on future profitability and productivity according to a firm's position in the industry.

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