This paper applies the Inverse Hyperbolic Sine (IHS) transformation to explore the variables that determine a firm's R&D collaborative expenditure. The IHS specification is used to overcome the inconsistencies deriving from non-normality of error terms which are typical in censored data. This represents a novelty in R&D studies. The sample employed refers to 1231 Italian firms where the dependent variable under investigation is strongly skewed by the zero values and by the extreme observations. The results show that standard errors are smaller in the IHS model than in the more common logarithmic one. The analysis also shows that size and public grants are effective in determining the level of cooperative R&D expenditure. Absorptive capacity, outsourcing inputs or services externally and industry, also play an important role.

An Empirical Investigation of the Determinants of R&D Cooperation: an Application of the Inverse Hyperbolic Sine Transformation / Carboni, Oliviero Antonio. - In: RESEARCH IN ECONOMICS. - ISSN 1090-9443. - 66:(2012), pp. 131-141.

An Empirical Investigation of the Determinants of R&D Cooperation: an Application of the Inverse Hyperbolic Sine Transformation

CARBONI, Oliviero Antonio
2012-01-01

Abstract

This paper applies the Inverse Hyperbolic Sine (IHS) transformation to explore the variables that determine a firm's R&D collaborative expenditure. The IHS specification is used to overcome the inconsistencies deriving from non-normality of error terms which are typical in censored data. This represents a novelty in R&D studies. The sample employed refers to 1231 Italian firms where the dependent variable under investigation is strongly skewed by the zero values and by the extreme observations. The results show that standard errors are smaller in the IHS model than in the more common logarithmic one. The analysis also shows that size and public grants are effective in determining the level of cooperative R&D expenditure. Absorptive capacity, outsourcing inputs or services externally and industry, also play an important role.
2012
An Empirical Investigation of the Determinants of R&D Cooperation: an Application of the Inverse Hyperbolic Sine Transformation / Carboni, Oliviero Antonio. - In: RESEARCH IN ECONOMICS. - ISSN 1090-9443. - 66:(2012), pp. 131-141.
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11388/84177
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 13
  • ???jsp.display-item.citation.isi??? ND
social impact