1. R&D during the covid-19 pandemic : The relationship between R&D and performance during crisis
- Author
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Andersson, Cornelia, Olofsson, Simon, Andersson, Cornelia, and Olofsson, Simon
- Abstract
Research and Development (R&D) is a socially beneficial factor in how society is able todevelop through its businesses. The business world remains dependent on development tobe able to retain and attract new customers and enter new markets to grow and survive as abusiness. The covid-19 pandemic transformed the everyday life of billions of people, takinga place in history as a catalyst for the changes in the way society treats work, leisure,finances and much more. Sweden approached the pandemic with caution to not deprive itspeople of their highly valued autonomy, but still kept in line with crisis management policiesand constitutional laws. This allowed for fewer regulations and more recommendations,whilst trying to protect the Swedish economy and at the same time protect the people fromfalling ill. This paper researches the effect covid-19 and the Swedish regulations had on therelationship between R&D investment and businesses growth. The theories used to analyzethis issue are creative destruction theory and people’s choice theory, both of which pertainto understanding how businesses can keep growing during a recession. Data has beenretrieved from the European database ORBIS and analyzed using the statistical softwareStata.This study was conducted using a quantitative research method to objectively assess thedata. The study is designed with both finance and business development in mind. Atheoretical frame of reference was built and complemented with a literature search to get agreater understanding of covid-19 and its effects, which helped in the analysis of 84businesses who all conduct R&D practices. Earlier studies had shown R&D to have apositive relationship with firm growth and performance. This study confirms and adds tothis scholarly consensus, while also examining the effects a crisis has on this relationship.The study showed that not only is the relationship still positive, but it becomes strongerduring a crisis as companies with higher R&am
- Published
- 2024