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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.

Suggested Citation

  • Damijan, Jože P. & Kostevc, Črt & Rojec, Matija, 2012. "Does innovation help the good or the poor performing firms?," Economics Letters, Elsevier, vol. 115(2), pages 190-195.
    • Handle: RePEc:eee:ecolet:v:115:y:2012:i:2:p:190-195
    DOI: 10.1016/j.econlet.2011.11.024
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    1. Pierre Mohnen & Jacques Mairesse & Marcel Dagenais, 2006. "Innovativity: A comparison across seven European countries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 391-413.
    2. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
    3. Jacques Mairesse, 2008. "Employment, innovation, and productivity: evidence from Italian microdata," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 17(4), pages 813-839, August.
    4. 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.
    5. Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity Across Four European Countries," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 22(4), pages 483-498, Winter.
    6. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
    7. 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.
    8. Sanghoon Ahn, 2001. "Firm Dynamics and Productivity Growth: A Review of Micro Evidence from OECD Countries," OECD Economics Department Working Papers 297, OECD Publishing.
    9. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(2), pages 317-341.
    10. Jan Eeckhout & Boyan Jovanovic, 2002. "Knowledge Spillovers and Inequality," American Economic Review, American Economic Association, vol. 92(5), pages 1290-1307, December.
    11. repec:crs:wpaper:9833 is not listed on IDEAS
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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. Dziallas, Marisa & Blind, Knut, 2019. "Innovation indicators throughout the innovation process: An extensive literature analysis," Technovation, Elsevier, vol. 80, pages 3-29.
    4. 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.
    5. Caterina Santi & Pietro Santoleri, 2017. "Exploring the link between innovation and growth in Chilean firms," Small Business Economics, Springer, vol. 49(2), pages 445-467, August.
    6. Seenaiah Kale & Badri Narayan Rath, 2018. "Does Innovation Enhance Productivity In Case Of Selected Indian Manufacturing Firms?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(05), pages 1225-1250, November.
    7. Marta Daroń & Monika Górska, 2019. "Management Premises and Barriers in the Metal Industry in Poland in the Context of Innovative Activity," Sustainability, MDPI, vol. 11(23), pages 1-18, November.
    8. Busom, Isabel & Vélez-Ospina, Jorge Andrés, 2017. "Innovation, Public Support, and Productivity in Colombia. A Cross-industry Comparison," World Development, Elsevier, vol. 99(C), pages 75-94.
    9. Doran, Justin & Ryan, Geraldine, 2014. "Firms’ skills as drivers of radical and incremental innovation," Economics Letters, Elsevier, vol. 125(1), pages 107-109.
    10. Carmen Dolores Blázquez Puerta & Guillermo Bermúdez-González & Ismael P. Soler García, 2022. "Human Systematic Innovation Helix: Knowledge Management, Emotional Intelligence and Entrepreneurial Competency," Sustainability, MDPI, vol. 14(7), pages 1-21, April.

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    More about this item

    Keywords

    Research and development; Innovation; Knowledge spillovers; Productivity growth;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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