Does R&D increase the profit contribution of intangible assets? An exploration of European and American automotive suppliers

Downloads

Downloads per month over past year

24965

Impacto

Downloads

Downloads per month over past year



Lutz, Stefan (2014) Does R&D increase the profit contribution of intangible assets? An exploration of European and American automotive suppliers. [ Documentos de Trabajo del Instituto Complutense de Análisis Económico (ICAE); nº 07, 2014, ] (Unpublished)

[thumbnail of 1407.pdf]
Preview
PDF
Creative Commons Attribution Non-commercial Share Alike.

110kB

Official URL: http://eprints.ucm.es/24965/




Abstract

Economic theory implies that research and development (R&D) efforts increase firm productivity and ultimately profits. In particular, R&D expenses lead to the development of intangible assets in the form of intellectual property (IP) and these assets command a return that increases overall profits of the firm. This hypothesis is investigated for the North American and European automotive supplier industries.
Results indicate that R&D expenses in fact increase both intangible asset levels and their profit contributions. In particular, increases in the R&D expense to sales ratio lead to increases in the profit contribution of intangible assets relative to sales. This indicates that more R&D intensive IP should command higher royalty rates per sales when licensed to third parties and within multinational enterprises alike.


Item Type:Working Paper or Technical Report
Additional Information:

JEL classification: D24, L20, L62, M21

Uncontrolled Keywords:Productivity; Intellectual property; Royalties; MNE; Transfer pricing.
Subjects:Social sciences > Economics > Econometrics
Series Name:Documentos de Trabajo del Instituto Complutense de Análisis Económico (ICAE)
Volume:2014
Number:07
ID Code:24965
Deposited On:04 Apr 2014 11:51
Last Modified:04 Apr 2014 11:51

Origin of downloads

Repository Staff Only: item control page