The fundamental importance of skills for productivity advance is being increasingly recognized. In this article, Someshwar Rao, Jianmin Tang and Weimin Wang of Industry Canada provide additional evidence of this relationship through a detailed examination of the dynamics of innovation and...

The effect of R&D on firms' future earnings uncertainty is an important factor in the decision of accounting treatment of the investment (expensing vs. capitalization). This study provides new evidence on the effect of R&D investment on future earnings uncertainty. We posit that R&D investment...