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The authors compare how both these methods eliminate endogeneity in the estimated production function and thus improve the accuracy of estimates of the rate of return on R&amp;D. These findings thus contribute to the managerial decision-making process on R&amp;D strategy by providing insights into the precise contribution of firm R&amp;D to profit.<\/jats:p>","DOI":"10.4018\/ijssoe.2018040102","type":"journal-article","created":{"date-parts":[[2018,9,6]],"date-time":"2018-09-06T15:39:14Z","timestamp":1536248354000},"page":"16-29","source":"Crossref","is-referenced-by-count":1,"title":["Japanese R&amp;D Profitability"],"prefix":"10.4018","volume":"8","author":[{"given":"Hirokazu","family":"Yamada","sequence":"first","affiliation":[{"name":"Osaka Prefecture University, Sakai, Japan"}]},{"given":"Yuji","family":"Nakayama","sequence":"additional","affiliation":[{"name":"Osaka Prefecture University, Sakai, Japan"}]}],"member":"2432","reference":[{"key":"IJSSOE.2018040102-0","doi-asserted-by":"publisher","DOI":"10.1111\/j.1468-0084.1987.mp49004006.x"},{"key":"IJSSOE.2018040102-1","unstructured":"Bond, S., Harhoff, D., & Van Reenen, J. (2003). 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