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Does innovation help the good or the poor performing firms?

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  • Damijan, Jože P.
  • Kostevc, Črt
  • Rojec, Matija

Abstract

Using firm-level innovation data we find surprising results on the benefits of innovation. Only manufacturing firms with below average productivity growth are likely to benefits significantly from successful innovation, while faster growing firms do not gain additional benefits from innovating.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 115 (2012)
Issue (Month): 2 ()
Pages: 190-195

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Handle: RePEc:eee:ecolet:v:115:y:2012:i:2:p:190-195

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Web page: http://www.elsevier.com/locate/ecolet

Related research

Keywords: Research and development; Innovation; Knowledge spillovers; Productivity growth;

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References

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  1. James Levinsohn & Amil Petrin, 2000. "Estimating Production Functions Using Inputs to Control for Unobservables," NBER Working Papers 7819, National Bureau of Economic Research, Inc.
  2. Bronwyn H. Hall & Francesca Lotti & Jacques Mairesse, 2007. "Employment, innovation, and productivity: Evidence from italian microdata," Temi di discussione (Economic working papers) 622, Bank of Italy, Economic Research and International Relations Area.
  3. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," Review of Economic Studies, Oxford University Press, vol. 70(2), pages 317-341.
  4. repec:fth:inseep:9833 is not listed on IDEAS
  5. Sanghoon Ahn, 2001. "Firm Dynamics and Productivity Growth: A Review of Micro Evidence from OECD Countries," OECD Economics Department Working Papers 297, OECD Publishing.
  6. Pierre Mohen & Jacques Mairesse & Marcel Dagenais, 2006. "Innovativity : A Comparison Across Seven European Countries," Working Papers 2006-15, Centre de Recherche en Economie et Statistique.
  7. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation, and Productivity: An Econometric Analysis at the Firm Level," NBER Working Papers 6696, National Bureau of Economic Research, Inc.
  8. Jan Eeckhout & Boyan Jovanovic, 2002. "Knowledge Spillovers and Inequality," American Economic Review, American Economic Association, vol. 92(5), pages 1290-1307, December.
  9. Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity Across Four European Countries," Oxford Review of Economic Policy, Oxford University Press, vol. 22(4), pages 483-498, Winter.
  10. Parisi, Maria Laura & Schiantarelli, Fabio & Sembenelli, Alessandro, 2006. "Productivity, innovation and R&D: Micro evidence for Italy," European Economic Review, Elsevier, vol. 50(8), pages 2037-2061, November.
  11. Harrison, Rupert & Jaumandreu, Jordi & Mairesse, Jacques & Peters, Bettina, 2005. "Does innovation stimulate employment? A firm-level analysis using comparable micro data on four European countries," MPRA Paper 1245, University Library of Munich, Germany.
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Citations

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Cited by:
  1. Piacentino, Davide, 2012. "Micro evidence for sources of innovation in European countries," MPRA Paper 39110, University Library of Munich, Germany.
  2. Nicolau, Juan Luis & Santa-María, María Jesús, 2013. "Communicating excellence in innovation," Economics Letters, Elsevier, vol. 118(1), pages 87-90.
  3. Juan A. Máñez & María E. Rochina-Barrachina & Juan A. Sanchis-Llopis & Oscar Vicente, 2013. "Financial constraints and Spanish manufacturing firms’ R&D and exporting," Working Papers 1324, Department of Applied Economics II, Universidad de Valencia.

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