Table 2 Description of all variables... | Emerald Publishing

Table 2

Description of all variables used to develop the study

	Variable	Description
1	Indebtedness	Total liabilities to total assets
2	R&D outsourcing competitiveness (R&D Out Comp)	This variable serves as a proxy for the relative external R&D intensity of the firm in comparison to its industry peers. We operationalise this variable by subtracting the ratio of external R&D expenses to sales at the sub-industry level (i.e. sub-industry median R&D intensity) from the ratio at the firm level. Higher scores on this variable indicate that a firm invests more heavily in external R&D than its sub-industry peers and thus, is more likely to compete on the basis of external R&D
3	Family firm	Binary variable that equals 1 for family firms and 0 otherwise, where a firm is considered a family firm if a family controls the firm
4	External R&D	External R&D to total sales
5	Internal R&D	Internal R&D to total sales
6	Size	Natural log of total assets
7	Age	Natural log of the value obtained by subtracting the year the firm was founded from the current year
8	FICS	Binary variable that equals 1 if the firm received subsidies for innovation and 0 otherwise
9	ROA	Earnings before interest and tax to total assets
10	Tangible assets	The firm’s ratio of tangible assets to total assets is calculated by dividing total property, plant and equipment by the total book value of assets
11	Liquidity	The ratio of current assets to current liabilities

	Variable	Description
1	Indebtedness	Total liabilities to total assets
2	R&D outsourcing competitiveness (R&D Out Comp)	This variable serves as a proxy for the relative external R&D intensity of the firm in comparison to its industry peers. We operationalise this variable by subtracting the ratio of external R&D expenses to sales at the sub-industry level (i.e. sub-industry median R&D intensity) from the ratio at the firm level. Higher scores on this variable indicate that a firm invests more heavily in external R&D than its sub-industry peers and thus, is more likely to compete on the basis of external R&D
3	Family firm	Binary variable that equals 1 for family firms and 0 otherwise, where a firm is considered a family firm if a family controls the firm
4	External R&D	External R&D to total sales
5	Internal R&D	Internal R&D to total sales
6	Size	Natural log of total assets
7	Age	Natural log of the value obtained by subtracting the year the firm was founded from the current year
8	FICS	Binary variable that equals 1 if the firm received subsidies for innovation and 0 otherwise
9	ROA	Earnings before interest and tax to total assets
10	Tangible assets	The firm’s ratio of tangible assets to total assets is calculated by dividing total property, plant and equipment by the total book value of assets
11	Liquidity	The ratio of current assets to current liabilities

Source(s): Table by authors