Research Expenditures Research Articles

The carbon emission reduction effect of China’s national high-tech industrial development zones

The double carbon goal is a wide and profound economic and social systematic change. It is also crucial to China's sustainable development. How to promote emission reduction, the National High-Tech Industrial Development Zones(NHTDZs) policy is the key to addressing this problem. Based on urban data from 2003 to 2019 from China, this paper uses the multi-time point asymptotic difference method to explore the impact of the NHTDZs establishment on carbon emissions. The establishment of NHTDZs reduces CO2 emissions, which remains valid through robustness tests. The mechanism analysis demonstrated that the construction of NHTDZs reduces CO2 emissions by increasing innovation levels, increasing research expenditures and emphasizing human capital. Further analysis shown that geographic location, initial resource endowment, population size, and level of green finance development are difference in different cities. This provides guidance promoting the development of NHTDZs and future layout.

Pattern of European Regional Creativity: Exploring Endogenous Sustainability

Abstract During the latest decades, regional creativity has often been considered as the precondition for innovativeness and sustainability. However, quantitative indicators of creativity are the subject of discussion. The paper aims to analyse the patterns and causes of European regional creativity distribution, revealing the influence of endogenous determinants on regional innovative development. An empirical analysis of regional patenting activity and a selection of indicators of regional creativity is conducted. Among the indicators, we include the development of regional institutions that are assessed through the data of the European Quality of Government Index. Besides the learning ability of the region (indicators of higher education prevalence and digital skills), the abundance of the creative class, regional innovative infrastructure, and population agglomeration were taken into account. The paper concludes concerning the most crucial factors contributing to endogenous sustainability through the lenses of European regions. In general, the formed model turned out to be significant with an acceptable level of standard error and a high predictive value. The influence of most of the parameters (except for the intelligence) was positive and significant. It is especially worth highlighting the parameters of regional institutions’ quality and volumes of private research and development expenditures, which exert the greatest positive influence on the resulting variable.

Impact of Accounting Recognition and Measurement on the Financial Reporting

In recent years, there has been an argument about whether or not the complicated figures could be reported in the balance sheets or in the income statements correctly. Intangible assets have become significantly vital in todays rapidly changing economy towards the achievement of business success across different industries. Their peculiar nature however poses significant challenges when it comes to valuation and accounting practices. This paper explores how intangible assets play a role in improving competitiveness, financial performance, as well as appraising and managing these assets effectively so as to optimize their value and support strategic decision-making. Moreover, the paper focuses on accounting treatment for research and development expenditures that illustrate the relationship between R&D investments and creating intangible assets. Furthermore, it addresses new lease accounting standards influence financial reports and transparency. Based on examining best practices and prevailing trends, this article examines optimizing R&D investments, managing intangible assets, and untangling issues of leasing accounting complexities such that will be useful for companies looking to improve their financial reporting processes as well as corporate decisions.

Examining Sigma and Beta Convergence in Emerging Market Economies

This study examines convergence among the select emerging market economies (EMEs) over two decades, from 2000 to 2020. The coefficient of variation was used to measure sigma convergence. Cross-sectional and panel regression analyses were performed to examine unconditional and conditional beta convergence, respectively. The macroeconomic variables chosen for the panel regression analysis were gross fixed capital formation, current account balance, inflation, research and development expenditure, world governance index and life expectancy index. The results supported the presence of convergence (both sigma and beta) among the EMEs over the selected period. In addition, it was found that, except for the current account balance, all selected variables contributed significantly to the growth process of EMEs.

Role of land use, green energy, and water resources for food accessibility: Evidence from emerging economies in the lens of COP28

AbstractIn the era of COP28, where most of the developed and developing economies concentrate more on the development of environmentally friendly energy resources to tackle the issue of climate change. Nevertheless, the literature lacks appropriate evidence regarding the influences of green energy and other resources on food security. This study analyses the influences of land use, green energy, and water resources on food accessibility in emerging economies, while also considering the important roles of natural resources, research and development (R&D) expenditure, and economic growth during 1980–2020. Due to non‐linear data dispersion, the novel moments quantile regression is employed. Results assert that land use has a positive significant influence on food accessibility in the presence of water resources and a weaker negative impact in the presence of natural resources. Natural and water resources are detrimental to food accessibility in the Emerging Seven (E7) countries. Furthermore, R&D expenditure and green energy positively (negatively), while economic growth negatively (positively) impacted food accessibility in the presence of natural resources (water resources). The results are robust and validate causal inferences that help develop appropriate policies for emerging economies concerning food accessibility or security. In this rapidly evolving era, most empirical studies consider environmental quality. Conversely, this study contributes to the literature by examining the factors influencing food accessibility, as this issue is of considerable importance because of the rapidly growing global population.

The Determinants of Corporate Cash Holdings: Novel Evidence from Emerging Countries

The aim of this study is to investigate the determinants of corporate cash holdings in emerging countries. The sample comprises non-financial firms from six emerging countries, five of them commonly referred to as BRICS, plus Turkey. The dataset includes the data of 4,769 firms and covers a ten-year period from 2012 to 2021, resulting in a total of 47,690 firm-year observations. We run panel regressions, specifically fixed and random effects models, and conduct the J.A. Hausman [1] test to choose between the latter. We use several firm-specific variables as independent variables and the GDP growth rate and the inflation rate as country-specific control variables. The results reveal that firm size, leverage, capital expenditures, net working capital, operating cash flow, dividend payments, firm age, and research and development (R&D) expenditures are significant determinants of corporate cash holdings, with some differences among countries and/or industries in terms of the sign and the significance levels. The macroeconomic variables showed significant results in some countries and industries, yet they were not consistent enough to make general conclusions. This study provides new empirical evidence on the determinants of corporate cash holdings by using a large dataset from major emerging countries. Our findings have important implications for corporate managers and policymakers in designing cash holding and liquidity policies. A comprehensive understanding of the main determinants of corporate cash holdings enables managers to adopt appropriate financing and investing strategies in the long term, as well as better short-term financial policies.

Regional economic impact of university research expenditures

ABSTRACT Governments around the world provide significant funds for research activities at higher education institutions. Despite universities’ increased emphasis on external research funds and increased national funding for university research, little is known about the economic impacts specific to research expenditures. We use IMPLAN, an input-output model, to analyze the local economic impacts of externally sponsored university research expenditures in two geographic areas using a technological university in the Midwestern United States as a case study. For the rural micropolitan area, we find that one million dollars in university external research expenditures is associated with $711,000 in value added, 10 jobs, and $159,000 in tax revenue. The effects per million dollars of expenditures are typically larger in the medium metropolitan area; one million dollars in university external research expenditures is associated with $945,000 in value added, 9 jobs, and $164,000 in tax revenue. We also estimate value added, employment, and tax multipliers of 1.67, 1.86, and 1.74 for the micropolitan area and 2.02, 2.25, and 2.09 in the medium metropolitan area. Last, we show that 15-18% of generated tax revenue goes to the state and 75–77% goes to the federal government. Our results highlight the local and statewide economic returns to national public policy to invest in university research activities and how characteristics of the local economy influence the magnitude of those returns. The variation in the impacts also suggests that policy makers should be aware of differences across both geographic areas and impact measures (e.g. employment versus output).

Natural resources utilization, digital technology, and green development expenditures can reduce environmental stress: A case study of emerging economies

The current study focuses on describing global environmental issues and the initiatives of higher authorities to resolve them. Therefore, the current research considers emerging economies to demonstrate the vital environmental factors from 2005 to 2022. However, the second-generation estimation strategy was utilized to investigate the long-run impact of natural resources, information & communication technology (ICT), research & development expenditures (R&D), human capital, openness, and financial development on carbon emissions. This empirical research utilizes a series of novel estimators to investigate the study objectives. In light of the study's findings, ICT, R&D, and human capital are all important factors contributing to environmental quality. However, natural resources, openness, and financial development increase emissions. Under the investigated outcomes, this study proposes some green policies to attain a sustainable environment shortly.

Do firms’ performance act as a catalyst of innovation: empirical evidence from innovative Indian manufacturing firms

PurposeThis paper aims to explore whether firms’ performance determines innovation using a sample of Indian manufacturing firms. The impact of innovation on firms’ performance across specific countries has been discussed in the literature. However, the effect of firms’ performance on innovation output, especially for a developing country like India, remains an open question. Against this backdrop, this paper investigates whether firms’ performance determines innovation in Indian manufacturing firms.Design/methodology/approachThe authors use patent filing information to instrument innovation and total factor productivity to instrument firms’ performance. The patent data are collected from the Patent Search and Analysis Software database and firm-level data from the Centre for Monitoring Indian Economy’s Prowess database. The study uses a sample of 309 Indian manufacturing firms from 2005 to 2021. Given the count nature of the data set used in this study coupled with over-dispersion issues, the authors have used the negative binomial regression to estimate the empirical specification of the models. There could be a possible problem of endogeneity due to the contemporary nature of innovation and firms’ performance. Therefore, to address the possible issues of endogeneity in the model, the authors have used the Generalized Method of Moments (GMM) estimators for more robustness checks of the empirical results.FindingsThe empirical results exhibit a positive and significant impact of firms’ performance on the innovation output, validating that firms’ performance determines innovation in Indian manufacturing firms. The posterior estimation results using GMM estimation also corroborate that firms’ productivity is a determining factor for the innovation output of Indian manufacturing firms. Furthermore, empirical results exhibit that the ex ante innovativeness of the firms substantially affects the current innovation. This validates that the firms’ prior experience, learning by doing and past innovative efforts are more likely to precipitate more innovation in the current period.Originality/valueThis paper’s main contribution is empirically estimating whether firms’ performance determines innovation, which is hardly discussed in the existing innovation literature, specifically using Indian manufacturing industries. Further, it adds to the existing literature in two other prominent ways. First, this paper investigates whether firms require ex ante expertise to innovate or if a firm starting from scratch can innovate significantly without any hindrances. Second, it enriches the literature by instrumenting innovation in output terms with the patent application against input measures of innovation, such as research and development expenditures, acquisition of machinery and equipment, while discussing the relationship between firms’ performance and innovation, specifically in the context of a developing economy like India.

Role of Innovation on Green Economic Growth: Empirical Analysis from the Countries of the Western Balkans

The impact of innovations on the growth of the green economy is a crucial aspect for a country’s economy. The promotion of these innovations and investments is also vital for sustainable and long-term development. This paper aims to present the role of innovation on green economic growth in the countries of the Western Balkans (Kosovo, Albania, North Macedonia, Montenegro, Bosnia and Herzegovina and Serbia) over a 13-year period, from 2010 to 2022.Data for the research were obtained from the World Bank and the Global Economy Database, where the study data type is Panel. The econometric models used are: the ordinary least squares (OLS) model, the Fixed Effect (FE) model, the Random Effect (RE) model and the Hausman Taylor (HTH) model. The dependent variable is green economic growth, while the independent variables include the innovation index (INV), research and development expenditures (R&D), information technology exports (ITE), patent applications from residents (PA), manufacturing output (MAN), business freedom index (BFI), investment freedom index (IFI), and economic freedom index (EFI). The findings of this paper show that the countries of the Western Balkans should promote key factors such as: innovation as an important driver, with a positive impact on green economic growth; research and development expenses; patent applications, and favorable business and economic environments to facilitate long-term green economic growth and promote environmental sustainability. The results indicate that the coefficient for innovation is positive (B=0.41) and statistically significant at the 1% level, supporting the hypothesis that the increase in innovation has a positive impact on green economic growth in the countries of the Western Balkans.

Foreign Direct Investment and Income Inequality Nexus in Middle-Income Countries: Exploring the Role of Research and Development Expenditure

The study explored the role of Research and Development Expenditure in determining the linkages between foreign direct investment (FDI) and income inequality within middle-income countries. World development indicators were used as a source for panel secondary data from 1990-2023. Panel unit root analysis was employed for data stationarity. The Panel co-integration analysis using the Fully Modified Ordinary Least Square (FMOLS) technique was applied to obtain correlations among three core variables. The findings explain that co-integration exists between variables; all variables are stationary at the first difference level. The FMOLS model incorporates the impact of FDI on the income inequality index with control variables. The analysis suggests that FDI in middle-income countries may decrease income inequality. Increasing research and development expenditures can reduce income inequality by promoting innovation and reducing reliance on external funding.

Predicting High Technology Exports of Countries for Sustainable Economic Growth by Using Machine Learning Techniques: The Case of Turkey

In this study, the estimation of high-tech exports for Turkey’s foreign trade target in line with sustainable development was carried out. The research was carried out for Turkey since it has been focusing on sustainable and environmentally friendly production and an export-oriented growth model, with a transformation in its economic growth strategy as of 2021, and high-tech products are a determining factor in the export target. In this research, three different machine learning techniques, namely artificial neural networks, logistic regression, and support vector regression, were used to determine a successful prediction method close to the ideal scenario. In the models, high technology exports for the period of 2007–2023 with data obtained from the World Bank were taken as the dependent variable, while the gross national product, number of patents, and research and development expenditures were taken as independent variables. By calculating the R2, MAPE, and MSE metrics, the success of the model with the least error was evaluated, and it was seen that artificial neural networks (ANNs) were the most successful model, with values of 94.2%, 0.011, and 0.073, respectively. The ANN model was followed by support regression and logistic regression.

Quantifying Research and Development Expenditures in the Drug Industry

Quantifying Research and Development Expenditures in the Drug Industry

Winner-takes-all or inclusive growth? The impact of digitalization on inter-firm wage inequality: evidence from China

ABSTRACT While previous research explores the impact of digitalization on individual firms’ performance, its potential to generate wage changes among firms with different characteristics, and subsequent inter-firm wage inequality, is often overlooked. Therefore, using China’s city panel data from 2003 to 2019, we assess the impact of digitalization on inter-firm wage inequality. Our findings reveal that digitalization increases inter-firm wage inequality in China, which is further validated using robustness tests. Mechanism tests reveal that digitalization tends to enhance high-wage firms’ productivity, widening the inter-firm productivity gap and exacerbating wage inequality. Further analysis indicates that digitalization boosts productivity more strongly in state-owned firms and those with higher research and development expenditure or more skilled talent, which typically pay higher wages, further widening the wage gap between firms. Our study supports the winner-takes-all perspective in the digital era, suggesting that the government should actively implement measures to protect vulnerable firms and maintain social equity.

Empowering energy transition: Green innovation, digital finance, and the path to sustainable prosperity through green finance initiatives

This study delves into the intricate relationship between financial digitization and green innovation, aiming to shed light on their dynamic interplay within a global context. Spanning from 2003 to 2020, the study encompasses 15 diverse countries, encompassing both developed and emerging economies, including Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, South Africa, Turkey, the United Kingdom, and the USA. It not only explores the direct connection between financial digitization and green innovation but also takes into account various controlling factors such as economic growth, industrial value addition, research and development expenditure, and gross national expenditure. The key findings from quantile regression reveal financial digitization have a significant positive effect, indicating that in countries with lower green innovation levels, an increase in digital financial services significantly boosts green innovation. This positive impact persists across quantiles, even in countries with higher green innovation levels, albeit to a lesser degree. Economic growth consistently shows a negative association with green innovation across all quantiles. Research and development expenditure consistently demonstrate a positive relationship with green innovation across all quantiles, emphasizing that countries allocating a higher percentage of their economic growth to research and development expenditure activities experience substantial increases in green innovation. This underscores that countries allocating a higher percentage of their economic growth to research and development expenditure activities experience substantial increases not only in green innovation but also in the facilitation of green finance initiatives.

Trends in Pediatric Attention-Deficit Hyperactive Disorder Diagnoses and Prescription Utilization: 2016 to 2019.

Attention-deficit hyperactive disorder (ADHD) is one of the most common psychiatric disorders among children, with estimated prevalence of 7% to 15% worldwide. The aim of this analysis was to update and summarize trends in diagnosis, demographics, and drug utilization of pediatric patients with ADHD. We used the Agency for Health care Research and Quality Medical Expenditure Panel Survey (MEPS), a survey of US individuals, families, their medical providers, and employers, using datasets from 2016 to 2019. The data sources from the MEPS database included the full-year consolidated files, medical conditions files, prescribed-medicines files, and condition-event link files for each year. We summarized trends in the proportion of children, ages 17 years and younger, with a diagnosis of ADHD, demographic information and a prescription for medication known to treat ADHD. In addition, we further stratified ADHD medication use by stimulant/nonstimulant categories. There was a 1.6% and 4.7% absolute increase in children with an ADHD diagnosis and those prescribed ADHD medications, respectively, from 2016 to 2019. Most of these children were male, non-Hispanic, and on public insurance. Of the children prescribed an ADHD medication and concomitant behavioral medications, stimulants-only use was the highest (60%-67%), followed by stimulants/nonstimulants (13%-15%), stimulant/antidepressants (6%-9%), and nonstimulants only (5%-9%). The proportion of patients with ADHD in the high-income and near-poor categories increased by 4% from 2016 to 2019. Diagnosis of ADHD among children is trending upward in the United States. Central nervous system stimulants, especially methylphenidate formulations, are the most prescribed ADHD medications for children 17 years and younger.

The effect of nuclear and fossil fuel energy R&D expenditures on environmental qualities in Canada

Minimizing environmental problems and a clean ecosystem are at the top of countries’ political agendas. Although Canada is an eco-friendly country, the rapid increase in its ecological footprint (EF) and the decreasing load capacity factor (LCF) in recent years make the analysis of Canada’s environmental determinants important. In this context, the study analyzes the effects of fossil fuel and nuclear-related research and development (R&D) expenditures on the EF and LCF under the load capacity curve (LCC) and environmental Kuznets curve (EKC) conditions for the period 1981–2022, employing the Bayer-Hanck cointegration test and the Fourier-ADL approach. The findings indicate that the EKC and LCC hypotheses are valid for Canada, that fossil fuel R&D reduces the LCF, and that nuclear energy R&D contributes to environmental development. Therefore, Canadian policymakers should promote nuclear energy technologies and use the financial resources provided by economic expansion for clean energy purposes.

Impacts of government ESG policies on corporate green innovation

This paper takes the A-share listed companies from 2014 to 2022 as the research object to explore the impact of China's standardized ESG information disclosure policy on corporate green innovation. The study found that in 2018, the Chinese government's ESG information disclosure policy significantly improved the quality and quantity of corporate green patent innovation. This paper believes that this policy has produced a significant ESG practice strengthening effect, research and development expenditure confirmation effect, and expanded financing channel effect, that is, after the policy implementation, the corporate ESG score and environmental score have increased, the capitalization ratio of R&D expenditure has increased, and external financing constraints have weakened. Our research provides empirical evidence for promoting corporate green transformation through government-standardized ESG information disclosure.

Uncovering the linkage among tourism diversification, economic development, energy consumption, population density, technology, and carbon emissions: empirical evidence from New Zealand

Although the influence of tourism on the environment is a frequently studied topic, examining the impact of tourism diversification on carbon emissions is a recent area of research. In this context, this study examines the impacts of tourism diversification, income, energy consumption, research and development expenditures, and population density on carbon emissions in New Zealand for the period 1981–2020 using the Autoregressive Distributed Lag approach. The results illustrate that income, lower tourism diversification, and energy consumption increase carbon emissions, while an upsurge in population density and research and development expenditures minimizes environmental degradation. According to the findings, New Zealand’s intensification of tourism in certain areas increases the environmental damage. It is therefore recommended that the New Zealand government promote tourism diversification and research and development expenditures to achieve environmental sustainability goals.

How renewable and nuclear energy-related research and development expenditures pave the way for curbing carbon emissions in France?

Research and development expenditures on clean energy have recently become an important option for sustainable development solutions. The lack of a study examining the impact of clean energy research and development expenditures on ecological quality in France is a research gap. With this motivation, this study aims to explore the impact of energy prices, technological advancements in renewable and nuclear energy on carbon (CO2) emissions in France from 1990 to 2020. To this end, the study employs the Fourier autoregressive distributed lag approach. The study recognizes the importance of environmental quality for sustainable development and highlights the negative ecological impact of fossil fuels. It points out that nuclear and renewable energy are valuable alternatives to fossil fuels. In addition, the study points out that rising energy prices can help encourage a switch to cleaner energy sources by making fossil fuels less economically viable. However, the adoption of alternative energies depends on factors such as cost and technological infrastructure. In particular, technological advancements in renewables have a greater impact on CO2 mitigation than those in nuclear energy. The unique contribution of this study is to explore the impact of energy-related technological developments on ecological quality in France, filling a research gap.