The role of R & D spending in medium-sized firms

Studies on the impact of R&D expenditure in small and medium-sized companies have experienced a rapid growth over the last several years. This paper aims to examine the impact of R&D investments on operating revenue growth by medium size Czech companies in the NACE Category 28 - Manufacture of machinery and equipment n.e.c. The paper uses the results of a questionnaire survey as the primary data source and the Amadeus database as a secondary data source. The statistical sample includes panel data of 51 medium businesses with R&D investments. The authors’ finding is that R&D investments generally have a positive effect on operating revenue growth. The authors found a statistically significant difference between turnover in 2014 and 2016 at a level of significance of α = 0.05. There is no statistically significant difference between domestic and foreign-owned businesses in changes in turnover in the short term. However, the authors did find a significant difference between the operating revenue per employee of domestic businesses and businesses with foreign equity.