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Technological Capabilities, Institutions and Firm Productivity: A Multilevel Study

Author

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  • Micheline Goedhuys

    (United Nations University, UNU-MERIT, Maastricht, The Netherlands.)

  • Martin Srholec

    (1] Center for Economic Research and Graduate Education-Economics Institute (CERGE-EI)**, Prague, the Czech Republic[2] Centre for Innovation, Research and Competence in the Learning Economy (CIRCLE), Lund, Sweden)

Abstract

National framework conditions directly affect the productivity of firms, but also moderate returns on their technological efforts. Although this has long been recognised, there is a dearth of quantitative analyses that openly consider this hypothesis. Using a data set of 15 425 manufacturing firms in 32 developing countries, we investigate the impact of national institutions on firms’ total factor productivity with the help of multilevel modelling. The results indicate that technological infrastructure and educational system make a large difference, and also most significantly interact with firms’ technological capabilities. However, governance measures that are conventionally considered in the literature explain surprisingly little.

Suggested Citation

  • Micheline Goedhuys & Martin Srholec, 2015. "Technological Capabilities, Institutions and Firm Productivity: A Multilevel Study," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 27(1), pages 122-139, January.
    • Handle: RePEc:pal:eurjdr:v:27:y:2015:i:1:p:122-139
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    Citations

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    Cited by:

    1. Vojtech Olbrecht, 2016. "Effect of the Service Directive on Wholesale and Retail Companies: Diff in Diff in Diff Evidence," MENDELU Working Papers in Business and Economics 2016-61, Mendel University in Brno, Faculty of Business and Economics.
    2. Calza, Elisa & Goedhuys, Micheline, 2016. "Entrepreneurial heterogeneity and the design of entrepreneurship policies for economic growth and inclusive development," MERIT Working Papers 2016-043, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Francesco Aiello & Graziella Bonanno, 2018. "Multilevel empirics for small banks in local markets," Papers in Regional Science, Wiley Blackwell, vol. 97(4), pages 1017-1037, November.
    4. Vojtěch Olbrecht, 2018. "Productivity Effect of Accessing the EU: Case of Bulgaria and Romania," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 4(1), pages 48-55.
    5. Elena Zukauskaite & Michaela Trippl & Monica Plechero, 2017. "Institutional Thickness Revisited," Economic Geography, Taylor & Francis Journals, vol. 93(4), pages 325-345, August.
    6. Sarela Enriquez-Perales & Conrado Diego García-Gómez & José María Díez-Esteban & Edmundo R. Lizarzaburu Bolaños, 2023. "Formal institutions, ICSID arbitration and firm performance: evidence from Latin America," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(2), pages 429-464, June.
    7. Berkel, Hanna & Estmann, Christian & Rand, John, 2022. "Local governance quality and law compliance: The case of Mozambican firms," World Development, Elsevier, vol. 157(C).
    8. Adamu Jibir & Musa Abdu, 2021. "Human Capital and Propensity to Protect Intellectual Properties as Innovation Output: the Case of Nigerian Manufacturing and Service Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 595-619, June.
    9. Vojtěch Olbrecht, 2016. "Multilevel Modeling in Exploring Institutional Effects on Performance," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 64(6), pages 2087-2094.
    10. Vojtech Olbrecht, 2016. "Harmonised Standards and Firm Productivity: Difference-in-Differences Evidence," MENDELU Working Papers in Business and Economics 2016-64, Mendel University in Brno, Faculty of Business and Economics.
    11. Di Ye & Linlin Zheng & Peixu He, 2021. "Industry Cluster Innovation Upgrading and Knowledge Evolution: A Simulation Analysis Based on Small-World Networks," SAGE Open, , vol. 11(3), pages 21582440211, July.
    12. Aralica Zoran & Svilokos Tonci & Bacic Katarina, 2018. "Institutions and Firms’ Performance in Transition Countries: The Case of Selected Cesee Countries," South East European Journal of Economics and Business, Sciendo, vol. 13(1), pages 68-80, June.
    13. Cláudia Braz & Maria Manuel Campos, 2019. "An analytical assessment of the risks to the sustainability of the Portuguese public debt," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    14. Randolph Luca Bruno & Elodie Douarin & Julia Korosteleva & Slavo Radosevic, 2022. "The Two Disjointed Faces of R&D and the Productivity Gap in Europe," Journal of Common Market Studies, Wiley Blackwell, vol. 60(3), pages 580-603, May.

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