Dependent Variable = △R&D (%) |
|---|
| | (1) | (2) |
|---|
Strategy = PD (t–1) | Strategy = CL (t–1) |
|---|
PD-CL | −0.8127*** | |
(−2.52) | |
CL-PD | | 0.3875* |
| | (1.91) |
SIZE | 0.0688* | 0.0328 |
(1.89) | (1.35) |
LEV | −0.1009 | 0.0605 |
(−0.47) | (0.38) |
_cons | −1.8349** | −0.7286 |
(−2.29) | (−0.84) |
Year | Yes | Yes |
Ind | Yes | Yes |
R-squared | 0.011 | 0.021 |
No. of obs. | 1649 | 1658 |
- Notes. This table shows the regression results of R&D spending changes when firms change their strategies. The dependent variable is the change of R&D (%). Column (1) reports the results of the previous product differentiation sample while Column (2) reports on the pre-cost leadership strategy adopters. PD-CL is a dummy variable that equals 1 if firms change their product differentiation strategy to cost leadership, CL-PD is a dummy variable that equals 1 if firms change their cost leadership strategy to product differentiation. T-statistics are reported in the parentheses. Coefficients marked ***, ** and * are significant at the 1%, 5% and 10% levels, respectively
