In general there is agreement about the positive impacts of R&D on performance of firms measured as productivity …, profitability and growth. However, the opposite relationship is less obvious and very little attention has been paid on examining …

investment, R&D, productivity and profit. Estimating relationships for 5,289 observations on Swedish manufacturing firms with 50 … between knowledge investments and ordinary investments can be established. Third, R&D has a strong effect on productivity and … productivity is bidirectional, while increased profit leads to more capital but not the vice versa. …