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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

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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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Publisher 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 listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Jose Miguel Benavente, 2006. "The role of research and innovation in promoting productivity in chile," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 15(4-5), pages 301-315, June. [Downloadable!] (restricted)
  2. 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. [Downloadable!] (restricted)
  3. 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. [Downloadable!]
    Other versions:
  4. 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, November. [Downloadable!] (restricted)
  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. [Downloadable!] (restricted)
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  6. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papers 98.15, Paris I - Economie Mathematique et Applications.
  7. Griliches, Z. & Mairesse, J., 1997. "Production Functions: The Search for Identification," Papers 9730, Institut National de la Statistique et des Etudes Economiques-.
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  8. 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, June. [Downloadable!] (restricted)
  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, Blackwell Publishing, vol. 107(4), pages 651-672, December. [Downloadable!] (restricted)
  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. [Downloadable!] (restricted)
  12. Spence, Michael, 1984. "Cost Reduction, Competition, and Industry Performance," Econometrica, Econometric Society, vol. 52(1), pages 101-21, January. [Downloadable!] (restricted)
  13. 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. [Downloadable!]
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  14. Mohnen, Pierre & Mairesse, Jacques & Dagenais, Marcel, 2006. "Innovativity: A comparison across seven European countries," UNU-MERIT Working Paper Series 027, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
    Other versions:
  15. Zvi Griliches, 1979. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 92-116, Spring. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. 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. [Downloadable!]
  2. Enrico Santarelli & Francesca Lotti, 2007. "The Relationship among innovative Output, Productivity, and Profitability. A test comparing USPTO and EPO data," Jena Economic Research Papers 2007-020, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek. [Downloadable!]
  3. Pierre Mohnen & Pierre Therrien, 2005. "Comparing the Innovation Performance in Canadian, French and German Manufacturing Enterprises," CIRANO Working Papers 2005s-33, CIRANO. [Downloadable!]
  4. Joze P. Damijan & Crt Kostevc & Saso Polanec, 2008. "From innovation to exporting or vice versa? Causal link between innovation activity and exporting in Slovenian microdata," LICOS Discussion Papers 20408, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
  5. Joze P. Damijan & Crt Kostevc & Matija Rojec, 2008. "Innovation and Firms' Productivity Growth in Slovenia: Sensitivity of Results to Sectoral Heterogeneity and to Estimation Method," LICOS Discussion Papers 20308, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
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