Understanding the Nexus of R&D Expenditures and Intangible Assets in Different Asset Types: A Quantile Regression Approach

Abstract

The financial outcomes of research and development (R&D) expenditures and intangible assets are not instantaneous and straightforward. To explore the varied perspectives of these relationships, quantile regression technique is used to understand whether and how such relationships vary for the firms with different financial strength. The findings provide insights in risk-return paradigm of R&D investment and the successive return, besides helping the policy makers to settle the priority sector, to get the expected result in line with country’s investment policy.