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Innovation and Productivity Across Four European Countries

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Author Info

  • Rachel Griffith
  • Elena Huergo
  • Jacques Mairesse
  • Bettina Peters

Abstract

This paper compares the role innovation plays in productivity across four European countries, France, Germany, Spain, and the UK, using firm-level data from the internationally harmonized Community Innovation Surveys (CIS3). Despite a considerable number of national firm-level studies analysing this relationship, cross-country comparisons using micro data are still rare. We apply a structural model that describes the link between R&D expenditure, innovation output, and productivity (CDM model). Our econometric results suggest that overall the systems driving innovation and productivity are remarkably similar across these four countries, although we also find interesting differences, particularly in the variation in productivity that is associated with more or less innovative activities. Copyright 2006, Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Review of Economic Policy.

Volume (Year): 22 (2006)
Issue (Month): 4 (Winter)
Pages: 483-498

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Handle: RePEc:oup:oxford:v:22:y:2006:i:4:p:483-498

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References

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  1. José Miguel Benavente, 2002. "The Role of Research and Innovation in Promoting Productivity in Chile," Working Papers wp200, University of Chile, Department of Economics.
  2. Mairesse,Jacques & Mohnen,Pierre, 2004. "The Importance of R&D for Innovation: A Reassessment Using French Survey Data," Research Memoranda 022, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology.
  3. Pierre Mohnen & Jacques Mairesse & Marcel Dagenais, 2006. "Innovativity: A Comparison Across Seven European Countries," CIRANO Working Papers 2006s-11, CIRANO.
  4. Zvi Griliches & Jacques Mairesse, 1995. "Production Functions: The Search for Identification," Harvard Institute of Economic Research Working Papers 1719, Harvard - Institute of Economic Research.
  5. Bronwyn H. Hall & Jacques Mairesse, 2006. "Empirical Studies of Innovation in the Knowledge Driven Economy," NBER Working Papers 12320, National Bureau of Economic Research, Inc.
  6. 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).
  7. Czarnitzki, Dirk & Licht, G, 2005. "Additionality of public R&D grants in a transition economy: the case of Eastern Germany," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/122723, Katholieke Universiteit Leuven.
  8. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 17-45 National Bureau of Economic Research, Inc.
  9. Griliches, Zvi, 1994. "Productivity, R&D, and the Data Constraint," American Economic Review, American Economic Association, vol. 84(1), pages 1-23, March.
  10. Jacques Mairesse & Jordi Jaumandreu, 2005. "Panel-data Estimates of the Production Function and the Revenue Function: What Difference Does It Make?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(4), pages 651-672, December.
  11. Cohen, Wesley M & Klepper, Steven, 1996. "A Reprise of Size and R&D," Economic Journal, Royal Economic Society, vol. 106(437), pages 925-51, July.
  12. Spence, Michael, 1984. "Cost Reduction, Competition, and Industry Performance," Econometrica, Econometric Society, vol. 52(1), pages 101-21, January.
  13. Bruno Crépon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation and Productivity : An Econometric Analysis at the Firm Level," Working Papers 98-33, Centre de Recherche en Economie et Statistique.
  14. Dirk Czarnitzki & Georg Licht, 2006. "Additionality of public R&D grants in a transition economy," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 14(1), pages 101-131, 03.
  15. Lööf, Hans & Heshmati, Almas, 2000. "Knowledge Capital and Performance Heterogeneity: A Firm Level Innovation Study," Working Paper Series in Economics and Finance 387, Stockholm School of Economics, revised 14 Aug 2000.
  16. 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.
  17. Luuk Klomp & George Van Leeuwen, 2001. "Linking Innovation and Firm Performance: A New Approach," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 8(3), pages 343-364.
  18. Gary Jefferson & Bai Huamao & Guan Xiaojing & Yu Xiaoyun, 2006. "R&D Performance in Chinese industry," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 15(4-5), pages 345-366.
  19. repec:fth:inseep:9833 is not listed on IDEAS
  20. Janz, Norbert & Lööf, Hans & Peters, Bettina, 2004. "Firm Level Innovation and Productivity - Is there a Common Story Across Countries?," Working Paper Series in Economics and Institutions of Innovation 24, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  21. Guido Fioretti, 2005. "The Production Function," Papers physics/0511191, arXiv.org.
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