Moderating Effects of R&D on Corporate Growth in U.S. and Japanese Hi-Tech Industries: An Empirical Study

The purpose of this study is to investigate the impact of R&D on a firm\u27s longrun performance and competitiveness within the U.S. and Japanese high-tech industries. First, we examine whether there is a positive relationship between R&D expenditures and a firm\u27s long-run performance (i.e., market growth). We then search for a systematic difference in this relationship between two different economic environments, the U.S. and Japan. Furthermore, the interacting (moderating) effect of R&D on the firm\u27s competitive structure and performance is explored. That is, how R&D moderates the linkage between the selected strategies and firms\u27 performance. We find the results indicate a positive relationship between R&D expenditures and a firm\u27s market growth, but one that is constant only in Japan