Abstract

This study estimates returns to Research and Development (R&D) Iranian industries. We use a panel data set of Iranian two-digit ISIC manufacturing industries, over the period 2001-2009. The results show that R&D expenditure has a positive and significant effect on profitability. The result shows the great influence of R&D expenditure on profitability of this sector. In other words, these sorts of expenditure have been main effects in increasing the profitability of these industries. We also find that advertisement expenditure and market concentration is an effective factor on profitability.

Keywords:

Iranian industries, panel data, profitability, research and development expenditures,

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Competing interests

The authors have no competing interests.

Open Access Policy

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Copyright

The authors have no competing interests.