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Engines of growth. Innovation and productivity in industry groups

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  • Bogliacino, Francesco
  • Pianta, Mario

Abstract

The diversity of technological activities that contribute to growth in labour productivity is examined in this article for manufacturing and services industries in eight major EU countries. We test the relevance of two "engines of growth", i.e., the strategies of technological competitiveness (based on innovation in products and markets) and cost competitiveness (relying on innovation in processes and machinery) and their impact on economic performance. We propose models for the determinants of changes in labour productivity and we carry out empirical tests for both the whole economy and for the four Revised Pavitt classes that group manufacturing and services industries with distinct patterns of innovation. Tests are carried out by pooling industries, countries and three time periods, using innovation survey data from CIS 2, 3 and 4, linked to economic variables. The results confirm the specificity of the two "engines of growth"; economic performances in European industries appear as the result of different innovation models, with strong specificities of the four Revised Pavitt classes.

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Bibliographic Info

Article provided by Elsevier in its journal Structural Change and Economic Dynamics.

Volume (Year): 22 (2011)
Issue (Month): 1 (February)
Pages: 41-53

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Handle: RePEc:eee:streco:v:22:y:2011:i:1:p:41-53

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Web page: http://www.elsevier.com/locate/inca/525148

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Keywords: Innovation Labour productivity Technological competitiveness Cost competitiveness Industry taxonomies;

References

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Citations

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Cited by:
  1. Massimiliano Mazzanti & Valeria Costantini & Susanna Mancinelli & Massimilano Corradini, 2011. "Environmental and Innovation Performance in a Dynamic Impure Public Good Framework," Working Papers 201117, University of Ferrara, Department of Economics.
  2. Raquel Ortega-Argilés & Mariacristina Piva & Marco Vivarelli, 2013. "Productivity gains from R&D investment: are high-tech sectors still ahead?," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1390, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
  3. Raquel Ortega-Argilés & Mariacristina Piva & Marco Vivarelli, 2012. "The transatlantic productivity gap: Is R&D the main culprit?," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1284, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
  4. Bogliacino, Francesco & Lucchese, Matteo & Pianta, Mario, 2013. "Job creation in business services: Innovation, demand, and polarisation," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 95-109.
  5. Corradini, Massimiliano & Costantini, Valeria & Mancinelli, Susanna & Mazzanti, Massimiliano, 2014. "Unveiling the dynamic relation between R&D and emission abatement," Ecological Economics, Elsevier, vol. 102(C), pages 48-59.
  6. Waheed, Abdul, 2011. "Innovation and firm-level productivity: econometric evidence from Bangladesh and Pakistan," MERIT Working Papers 061, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  7. Matteo Lucchese, 2011. "Innovation, demand and structural change in Europe," Working Papers 1109, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2011.
  8. Francesco Bogliacino & Matteo Lucchese & Mario Pianta, 2011. "Job creation in business services:Innovation, Demand, Polarisation," Working Papers 1107, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2011.

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