CREATING COMPETITIVE ADVANTAGE THROUGH RESEARCH AND DEVELOPMENT: AN EMPIRICAL INVESTIGATION OF THE DETERMINANTS OF RESEARCH AND DEVELOPMENT REPORTED ON ANNUAL FINANCIAL STATEMENTS

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Abstract

This study examines the determinants of reported R&D expenditure (where R&D expenditure proxies for R&D activities) in listed Malaysian firms, to gain insights into factors that promote R&D in Malaysian firms. It examines thecharacteristics of listed firms that undertake R&D in Malaysia and offers policy recommendations for promoting firm level R&D in Malaysia and other developing nations that suffer from similar low levels of R&D. Successful promotion of research and development in private firms can lead to the creation of intangible assets that can boost the growth of local companies and help to establish a competitive edge for the local economy. This competitive edge will enable local firms to successfully match the growing top-notch, international level competition resulting from increasing globalisation, and do well in the global arena.

Keywords: Competitive Advantage, R&D, Financial Statement

How to cite this paper: Samudhram, A. R., & Sivalingam, V. (2009). Creating competitive advantage through research and development: An empirical investigation of the determinants of research and development reported on annual financial statements. Corporate Ownership & Control, 6(4-4), 468-475. https://doi.org/10.22495/cocv6i4c4p5