Next Article in Journal
Effects of Artificial Light Treatments on Growth, Mineral Composition, Physiology, and Pigment Concentration in Dieffenbachia maculata “Compacta” Plants
Next Article in Special Issue
Research on Innovation Behavior and Performance of New Generation Entrepreneur Based on Grounded Theory
Previous Article in Journal
Surviving through Incubation Based on Entrepreneurship-Specific Human Capital Development: The Moderating Role of Tenants’ Network Involvement
Previous Article in Special Issue
Do Controlling Shareholders Who Pledged Their Shares Affect Sustainable Development? An Investigation Based on the Perspective of Corporate Innovation
Open AccessArticle

Firm Growth and R&D in the Korean Pharmaceutical Industry

1
Graduate School of Management of Technology, Korea University, 145, Anam-ro, Seongbuk-gu, Seoul 02841, Korea
2
Department of Industrial Management Engineering, Korea University, 145, Anam-ro, Seongbuk-gu, Seoul 02841, Korea
3
Division of Industrial Management Engineering, Korea University, 145, Anam-ro, Seongbuk-gu, Seoul 02841, Korea
*
Author to whom correspondence should be addressed.
Sustainability 2019, 11(10), 2865; https://doi.org/10.3390/su11102865
Received: 13 April 2019 / Revised: 16 May 2019 / Accepted: 17 May 2019 / Published: 20 May 2019
(This article belongs to the Special Issue Innovation and the Development of Enterprises)
We explore the impact of research and development (R&D) on sales growth rate with firm-specific factors under the Korean pharmaceutical industry structure using listed Korea pharmaceutical company data from 2007 to 2018 with the quantile regression technique. We find that R&D intensity has a positive effect on firm growth rate while R&D scale a negative effect on the firm growth rate at the upper quantile, whereas the result is opposite at the lower quantile. Firm size has a mixed relationship with sales growth at the upper quantile, thus Gibrat’s law is rejected in the Korean pharmaceutical industry. Firm age has a negative relationship with the sales growth rate at the upper quantile, which shows the consistent result with previous research that young firms grow faster. Patent persistence has a negative relationship with sales growth at the upper quantile, while a positive effect at the lower quantile. We show that young firms and firms with high R&D intensity contribute to the high growth rate, while the relationship is not clear at the lower quantile. Therefore, policy implication in this research is that the government should pay attention to encouraging and supporting R&D investment activities and small firms as well as consider ways to enhance patent rights. View Full-Text
Keywords: firm growth; R&D; quantile regression; pharmaceutical industry firm growth; R&D; quantile regression; pharmaceutical industry
Show Figures

Figure 1

MDPI and ACS Style

Chung, H.; Eum, S.; Lee, C. Firm Growth and R&D in the Korean Pharmaceutical Industry. Sustainability 2019, 11, 2865.

Show more citation formats Show less citations formats
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map

1
Back to TopTop