THE IMPACT OF COVID-19 PANDEMIC ON IT COMPANIES’ INNOVATION ACTIVITY IN THE USA

Author:

EVDOKIMOVA M.S.1ORCID,GUBINA E.I.2ORCID

Affiliation:

1. HSE University

2. Ingosstrakh Insurance Company

Abstract

The study analyzes the impact of COVID-19 pandemic on such innovative activity indicators as R&D spending and the number of international patents of American IT companies. The sample includes 130 US companies from 2010 to 2021. The data are analyzed using the models with fixed individual effects and robust errors, Tobit and Heckman models. According to the findings R&D/Sales ratio has not changed during the pandemic. However, R&D expenditures increased during the pandemic for highly innovative firms and companies from the technology equipment sector increased analogue capitalized R&D. Besides, firms that had international patents before the pandemic granted more patents for registration during the pandemic. A one-year lag was found between innovations’ input in the form of R&D investment and innovations’ output in the form of international patents. These findings allow us to conclude that COVID-19 has a positive impact only on highly innovative companies in the United States.

Publisher

Moscow University Press

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