The relationship between profit-sharing schemes and R&D activities: evidence from German firm-level data

Abstract

"We study the determinants of the use of profit sharing schemes (PSS) by private companies, exploiting a firm-level dataset for Germany. First, our results from static regression models replicate studies for the U.S. which report a positive correlation between R&D activity and PSS use. Similarly to those studies, we find that a firm's turnover is strongly associated with PSS use, whereas this does not hold for the age of a firm. Firms with a unionized or more qualified workforce are also associated with PSS use. By exploiting the panel structure of our data, we also provide a novel set of tests by means of dynamic models estimation. The analysis sheds light on the relation between R&D activity, past innovation and PSS use." (Author's abstract, IAB-Doku) ((en))

Cite article

d'Andria, D. & Übelmesser, S. (2021): The relationship between profit-sharing schemes and R&D activities: evidence from German firm-level data. In: Industry and Innovation, Vol. 28, No. 8, p. 990-1016., accepted on May 03, 2021. DOI:10.1080/13662716.2021.1929866