Unveiling the Link: Exploring the Relationship Between Biotech IPOs and R & D Expenditure in the USA

Abstract

In today’s highly competitive world, the need for research and development has rapidly increased in different sectors worldwide. In this regard, the biotech sector is also considered to play an important role. Therefore, the current research has focused on the impact of population (POP), R&D employees (RNDEMP), patent (PAT), biotech IPO and gross capital formation (GCF) on R&D expenditure (RNDE) within the context of UK. For this secondary quantitative study, the data was collected from websites of different organizations such as the World Bank and others from a period of 2000 to 2022. Autoregressive Distributed Lag (ARDL) was used for determining the association among the variables of this study. The findings obtained from this study showed that RNDEMP and POP have significant impact on RNDE (p < 0.05) while PAT, IPO and GCF insignificantly impact RNDE (p > 0.05). This study has also been effective in improving the literature concerning the association between biotech IPO and RNDE. It can also encourage different policymakers to develop important policies to promote RNDE within the context of biotech IPO.