摘要
In recent decades,with the rapid development of the knowledge economy and science,countries have embraced technical innovation and have gradually increased investment in research and development(R&D).A vast literature indicates that the relationship between R&D and firm performance is highly complex.The evidence suggests that R&D positively influences firm performance,yet findings on the process by which this happens are mixed.Rigorous analyses are required on how R&D investments affect energy consumption.This study explores the impact of R&D investment on the performance and energy consumption of 476 firms in Ethiopia by employing a combination of fixed-effect,propensity score matching,and endogenous treatment effect estimation methods.The empirical results reveal that investment in R&D positively influences both innovation and long-term financial performance but negatively impacts short-term financial performance and energy consumption.The results also show that the impacts of R&D activities vary significantly across different categories of firms,confirming that heterogeneity may be an issue among the firms considered.The results also indicate that the availability of credit is a more important moderating factor in the relationship between R&D investment and firm performance than the legal system is.These results have important implications for firms with growing R&D operations,especially those in developing countries such as Ethiopia.Ethiopian firms should invest more in R&D activities,such as in fundamental and applied research,to improve performance and enhance competitiveness.
