The Effects of Investment and Research Expenditure on Chemical and Pharmaceutical Industries

Considering the economic performance as a target for companies in chemical and pharmaceutical sectors, the main aim of this paper is to assess the impact of investment and research expenditure on the turnover and production of the Romanian firms in these domains. A panel data approach is applied and the main results suggested that actual and previous investment did not generate an increase in the production and turnover of the companies in the period 2005-2016. However, the increase in the number of researchers and in the research expenditure slowly stimulated the production and turnover. All in all, we can state that the investment in chemical and pharmaceutical sectors are still not sustainable in Romania and the future policies of the companies should be focus more on research and development activities.