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This paper investigates the relationship between R&D intensity and firm growth using a unique data set for firms with R&D activities in Austria between the period 1995-2006. Results based on the LAD estimator show that the initial R&D intensity has a positive and significant impact on both employment and sales growth in the subsequent two years. Quantile regressions for each cross-section reveal that the impact of R&D intensity is only significant from the 0.4 to the highest quantile of the conditional distribution of firm growth. However, the marginal impact is highest for firms at or slightly below the median of the distribution. Finally, we find that the R&D coefficient decreases across time