Investing in innovation: The relationship between R&D spending and financial performance in the European pharmaceutical industry
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F23%3A63565518" target="_blank" >RIV/70883521:28120/23:63565518 - isvavai.cz</a>
Result on the web
<a href="https://ieeca.org/journal/index.php/JEECAR/article/view/1368" target="_blank" >https://ieeca.org/journal/index.php/JEECAR/article/view/1368</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.15549/jeecar.v10i7.1368" target="_blank" >10.15549/jeecar.v10i7.1368</a>
Alternative languages
Result language
angličtina
Original language name
Investing in innovation: The relationship between R&D spending and financial performance in the European pharmaceutical industry
Original language description
The pharmaceutical industry is highly capital and knowledge-intensive, spending approximately 15% of its total revenue on research and development (R&D). This study aims to find the relationship between pharmaceutical businesses' financial performance and investments made in drug research and development in Europe. The study employs regression analysis with a time-lag effect of R&D spending on operating earnings. It is hypothesised that the investment expenditure of the previous year’s R&D investment will significantly and concurrently impact the economic-financial performance of the country and the findings show a strong and positive link between the previous year’s R&D expenditure and the current year's operating profit in the European countries, providing convincing evidence that R&D investments will pay off financially in the years ahead for the development of pharmaceuticals. The study also conducted diagnosis tests for the validation of the estimated models.
Czech name
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Czech description
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Classification
Type
J<sub>SC</sub> - Article in a specialist periodical, which is included in the SCOPUS database
CEP classification
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OECD FORD branch
50204 - Business and management
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2023
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Journal of Eastern European and Central Asian Research
ISSN
2328-8272
e-ISSN
2328-8280
Volume of the periodical
10
Issue of the periodical within the volume
7
Country of publishing house
US - UNITED STATES
Number of pages
21
Pages from-to
10006-1026
UT code for WoS article
001124558100001
EID of the result in the Scopus database
2-s2.0-85179948358