Exploring Determinants of R&D Expenditure: An Empirical Analysis in the High-Tech Industry

Abstract

Research and Development (R&D) expenditure is a critical driver of innovation and competitiveness, particularly within high-tech industries where technological advancement is paramount. This empirical study investigates the factors influencing R&D expenditure in the high-tech sector, aiming to provide insights into investment patterns and strategies. Utilizing quantitative methods and data from a diverse sample of high-tech firms, we analyze various determinants such as firm size, technological intensity, market competition, intellectual property protection, and government policies. Through regression analysis and hypothesis testing, we assess the significance and direction of these factors on R&D spending. Additionally, we explore potential interactions and moderating effects among the determinants to capture nuanced relationships. The findings of this research contribute to a deeper understanding of the decision-making processes driving R&D investment in high-tech industries, offering practical implications for firms, policymakers, and investors seeking to foster innovation and sustainable growth.