i am new to statistics. My question is that i am having a study on the relation of firms size(no. of employees) and their R&D spending. Is it necessary to standarize the firm's size variables?and if yes why?
it will depend on your research objective.
if you are doing the research in one sector only, you dont need to standardise.
if you are doing it across sectors ( eg manufacturing/ pharma/ hospitality) you might need to standardise, more details of your objective should get you a more specific answer