—The problems of management and optimization of
business innovative effort seem to be of vital importance in the
contemporary economics, especially in the period of global
economic slowdown. This paper is the continuation of research
work aiming to assess, on the basis of estimation of
transformation of Cobb-Douglas production function the
effectiveness of various types of business innovation
expenditures of manufacturing enterprises located in Poland.
The survey is based on data obtained from public statistics (The
Central Statistical Office). The econometric estimations
presented in the paper are based on the total sample of
maximum 191 firms permanently (every year in the time series)
active in the field of R&D over the observed 10 year period
between 2000 and 2009. The estimations are based on the
relative EBITD growth as dependent variable. Independent
variables including various categories of innovation
expenditure plus non innovative capital expenditure relative to
sales and relative employment growth were lagged from 0 to 6
years. The study revealed strong variation in terms of
effectiveness of various categories of innovative expenditure
and relatively strong and consistently positive lagged random
effects (RE) of both internal and external R&D expenditure.
This, together with other findings, might suggest that positive
effects of business R&D are mostly associated with specific
time-invariant individual characteristics of business units.
—Business innovation, business R&D,
effectiveness, emerging economies, fixed effects, random effects.
M. Martin is with the Lodz University of Technology, Division of
Economics, Wolczanska 215, 90-924 Lodz, Poland (e-mail:
Cite: M. Martin, "Effectiveness of Business Innovation and R&D in
Emerging Economies: The Evidence from Panel Data
Analysis," Journal of Economics, Business and Management vol. 3, no. 4, pp. 440-446, 2015.