Thats a unique idea.You should consider the following idea to enhance your idea so that it would impact uniquely: The impact of research and development (R&D) on firm performance is generally agreed to be positive, but the nature and extent of this impact share little agreement in the previous research. Using an improved, time series, cross-sectional regression model that accounts for both contemporaneous and firm-specific serial correlation, as ll as the feedback beten firm profitability and investments, our study compares the rate of return from a dollar investment on R&D to a dollar investment on fixed assets in pharmaceutical and chemical industries.  find positive associations of R&D intensity and all variables of firm performance (net margin, operating margin, sales growth, and market value).  find that an investment in R&D earns an operating margin return much higher than the industry cost of capital.  also find that the effect of an investment in R&D on the firm's market value is about twice as much the effect of an investment in fixed assets. These findings have implications for corporate investment strategies, indicating that additional R&D investment is more likely to provide a firm with a unique and sustainable competitive advantage.
['Ping-Hung Hsieh', 'Chandra S. Mishra', 'David H. Gobeli']
I am writing a research paper on a idea The return on R&D versus capital expenditures in pharmaceutical and chemical industries
[{"from": "human", "value": "I am writing a research paper on a idea The return on R&D versus capital expenditures in pharmaceutical and chemical industries"}, {"from": "gpt", "value": "Thats a unique idea.You should consider the following idea to enhance your idea so that it would impact uniquely: The impact of research and development (R&D) on firm performance is generally agreed to be positive, but the nature and extent of this impact share little agreement in the previous research. Using an improved, time series, cross-sectional regression model that accounts for both contemporaneous and firm-specific serial correlation, as ll as the feedback beten firm profitability and investments, our study compares the rate of return from a dollar investment on R&D to a dollar investment on fixed assets in pharmaceutical and chemical industries.  find positive associations of R&D intensity and all variables of firm performance (net margin, operating margin, sales growth, and market value).  find that an investment in R&D earns an operating margin return much higher than the industry cost of capital.  also find that the effect of an investment in R&D on the firm's market value is about twice as much the effect of an investment in fixed assets. These findings have implications for corporate investment strategies, indicating that additional R&D investment is more likely to provide a firm with a unique and sustainable competitive advantage."}]