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The link between firm-level innovation and aggregate productivity growth: a cross-country examination

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  • Hans L��f
  • Almas Heshmati

Abstract

A broad definition of innovation input is used, in which R&D is one of several sources of innovation. A quantitative innovation output measure is used in the analysis, which is based on a large representative sample of firms, including small firms. An econometric framework based on the knowledge-production function accounting for both selectivity and simultaneity bias is employed. The results from Nordic countries show that, given difficulties in pooling the data, it is important to identify country-specific models to account for country-specific effects and differences in countries' national innovation systems. Copyright , Beech Tree Publishing.

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Bibliographic Info

Article provided by Oxford University Press in its journal Research Evaluation.

Volume (Year): 12 (2003)
Issue (Month): 2 (August)
Pages: 131-147

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Handle: RePEc:oup:rseval:v:12:y:2003:i:2:p:131-147

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  1. Lööf, Hans & Heshmati, Almas, 2001. "On the Relationship between Innovation and Performance: A sensitivity Analysis," Working Paper Series in Economics and Finance 0446, Stockholm School of Economics, revised 01 Oct 2001.
  2. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output Per Worker Than Others?," The Quarterly Journal of Economics, MIT Press, vol. 114(1), pages 83-116, February.
  3. Zvi Griliches & Jacques Mairesse, 1991. "Comparing Productivity Growth: An Exploration of French and U.S. Industrial and Firm Data," NBER Chapters, in: International Volatility and Economic Growth: The First Ten Years of The International Seminar on Macroeconomics, pages 45-82 National Bureau of Economic Research, Inc.
  4. C.J. Krizan & John Haltiwanger & Lucia Foster, 2002. "The Link Between Aggregate and Micro Productivity Growth: Evidence from Retail Trade," Working Papers 02-18, Center for Economic Studies, U.S. Census Bureau.
  5. Hall, Bronwyn H. & Mairesse, Jacques, 1995. "Exploring the relationship between R&D and productivity in French manufacturing firms," Journal of Econometrics, Elsevier, vol. 65(1), pages 263-293, January.
  6. John F. Helliwell, 1996. "Economic Growth and Social Capital in Asia," NBER Working Papers 5470, National Bureau of Economic Research, Inc.
  7. Pierre Mohnen & Jacques Mairesse & Marcel Dagenais, 2006. "Innovativity: A Comparison Across Seven European Countries," NBER Working Papers 12280, National Bureau of Economic Research, Inc.
  8. Keefer, Philip & Knack, Stephen, 1997. "Why Don't Poor Countries Catch Up? A Cross-National Test of Institutional Explanation," Economic Inquiry, Western Economic Association International, vol. 35(3), pages 590-602, July.
  9. Zvi Griliches & Jacques Mairesse, 1995. "Production Functions: The Search for Identification," Harvard Institute of Economic Research Working Papers 1719, Harvard - Institute of Economic Research.
  10. Klette, Tor Jakob & Kortum, Samuel, 2002. "Innovating Firms and Aggregate Innovation," Memorandum 02/2002, Oslo University, Department of Economics.
  11. 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.
  12. John Haltiwanger, 2000. "Aggregate Growth: What Have We Learned from Microeconomic Evidence?," OECD Economics Department Working Papers 267, OECD Publishing.
  13. repec:fth:harver:1487 is not listed on IDEAS
  14. Charles R. Hulten, 1992. "Growth Accounting When Technical Change is Embodied in Capital," NBER Working Papers 3971, National Bureau of Economic Research, Inc.
  15. 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.
  16. repec:fth:inseep:9730 is not listed on IDEAS
  17. Hulten, Charles R, 1992. "Growth Accounting When Technical Change Is Embodied in Capital," American Economic Review, American Economic Association, vol. 82(4), pages 964-80, September.
  18. Ariel Pakes & Zvi Griliches, 1980. "Patents and R and D at the Firm Level: A First Look," NBER Working Papers 0561, National Bureau of Economic Research, Inc.
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Cited by:
  1. repec:tep:teppwp:wp11-05 is not listed on IDEAS
  2. Subal Kumbhakar & Raquel Ortega-Argilés & Lesley Potters & Marco Vivarelli & Peter Voigt, 2012. "Corporate R&D and firm efficiency: evidence from Europe’s top R&D investors," Journal of Productivity Analysis, Springer, vol. 37(2), pages 125-140, April.
  3. repec:prg:jnlpep:v:2013:y:2013:i:4:id:436:p:487-503 is not listed on IDEAS
  4. Raquel Ortega-Argilés & Lesley Potters & Marco Vivarelli, 2009. "R&D and Productivity: Testing Sectoral Peculiarities Using Micro Data," JRC-IPTS Working Papers on Corporate R&D and Innovation 2009-3, Institute of Prospective Technological Studies, Joint Research Centre.
  5. Gérard Ballot & Fathi Fakhfakh & Fabrice Galia & Ammon Salter, 2011. "The Fateful Triangle Complementarities between product, process and organizational innovation in the UK and France," Working Papers halshs-00812141, HAL.
  6. Alena Zemplinerová & Eva Hromádková, 2012. "Determinants of Firm´s Innovation," Prague Economic Papers, University of Economics, Prague, vol. 2012(4), pages 487-503.

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