Home > Business Databases, company information > A quick look at Research Quotient: Analyse and measure the effectiveness of a firm’s R&D

A quick look at Research Quotient: Analyse and measure the effectiveness of a firm’s R&D

Research QuotientA new resource has been added to our collection on WRDS called Research Quotient. It collates increase in total revenue with estimated investment in research and development (R&D) between 1974 and 2010. From their publicity materials:

Research Quotient = percentage increase in revenue from a 1% increase in R&D.
RQ is the output elasticity of R&D. RQ offers a universal, uniform, and reliable measure of a firm’s R&D productivity.

It is available now, for researchers at The University of Manchester, for US firms only. It is searchable by Compustat GVKEY and SIC codes, or by looking up companies by name one at a time.

See also: WRDS access and access.

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