Using firm-level survey data, we explore the relationship between management practices and innovative activity, including formal R&D.
- Across all industries, better-managed firms are significantly more likely to engage in research and development (R&D) than their peers.
- Better-managed firms tend to spend significantly more on R&D and innovative activity than comparable, less-well-managed firms.
- The type of R&D activity (product versus process and the source of funding) is not significantly different for better-managed firms once we account for compositional differences.
- The relationship between the reported share of innovative turnover and management scores is volatile and dependent on the choice of definition.
- Better-managed firms see higher labour productivity per pound of R&D spending than comparable, less-well-managed firms.
To download publication click here.