Doruk, Ömer Tuğsal2025-01-062025-01-0620231210-045510.18267/j.pep.8322-s2.0-85166118110https://doi.org/10.18267/j.pep.832https://hdl.handle.net/20.500.14669/1552The relationship between R&D expenditures and firm growth is examined for a cross-country firm-level dataset for the EU countries in the period from 1989 to 2019. A panel dynamic average treatment effect is estimated using a panel time-varying dynamic difference-indifferences model. The methodology can be counted as novel. The results show a positive and significant relationship between R&D and firm growth within the first five years of R&D investment in the 22 EU countries, over 700 firms and 30 years. The main novelty of the present study comes from examining the time-varying effect of R&D expenditures on firm growth for manufacturing firms in EU countries. © 2023, University of Economics - Prague. All rights reserved.eninfo:eu-repo/semantics/openAccessdynamic time-varying difference in differencesEU countriesfirm growthR&Dtime-varying R&D-led growthArticle2913Q327332