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Innovation height, spillovers and tfp growth at the firm level: Evidence from French manufacturing

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  • Emmanuel Duguet

Abstract

The author examines the contribution of incremental and radical innovations to total factor productivity (TFP) growth at the firm level. The first part of our analysis is dedicated to the determinants of innovation and reveals two different innovation regimes. On the one hand, radical innovations rely strongly on firm-level spillovers, including property rights, and formal internal research, whereas on the other hand, incremental innovations rely mostly on the adoption of equipment goods accompanied by informal research. It is found that radical innovations are the only significant contributors to TFP growth, so that innovation height matters. Evidences show that TFP growth is better represented by an upward shift of the production function than by a continuous innovation measure. Overall, the growth gains found are comparable to the ones of the previous studies.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 15 (2006)
Issue (Month): 4-5 ()
Pages: 415-442

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Handle: RePEc:taf:ecinnt:v:15:y:2006:i:4-5:p:415-442

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Related research

Keywords: Growth; Innovation; Total factor productivity; Solow residual; Spillovers;

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References

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  1. Jose Miguel Benavente, 2006. "The role of research and innovation in promoting productivity in chile," Economics of Innovation and New Technology, Taylor & Francis Journals, Taylor & Francis Journals, vol. 15(4-5), pages 301-315.
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  4. Corinne BARLET & Emmanuel DUGUET & David ENCAOUA & Jacqueline PRADEL, 1998. "The Commercial Success of Innovations: an Econometric Analysis at the Firm Lebel in French Manufacturing," Annales d'Economie et de Statistique, ENSAE, ENSAE, issue 49-50, pages 457-478.
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  10. Duguet, E., 2000. "Knowledge Diffusion, Technological Innovation and TFP Growth at the Firm Level : Evidence from French Manufacturing," Papiers d'Economie Mathématique et Applications, Université Panthéon-Sorbonne (Paris 1) 2000.105, Université Panthéon-Sorbonne (Paris 1).
  11. Zvi Griliches, 1995. "The Discovery of the Residual: An Historical Note," NBER Working Papers 5348, National Bureau of Economic Research, Inc.
  12. Lööf, Hans & Heshmati, Almas, 2001. "On the Relationship between Innovation and Performance: A sensitivity Analysis," Working Paper Series in Economics and Finance, Stockholm School of Economics 0446, Stockholm School of Economics, revised 01 Oct 2001.
  13. Zvi Griliches, 1995. "The Discovery of the Residual: A Historic Note," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 1742, Harvard - Institute of Economic Research.
  14. Pagan, Adrian, 1984. "Econometric Issues in the Analysis of Regressions with Generated Regressors," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(1), pages 221-47, February.
  15. 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, Université Panthéon-Sorbonne (Paris 1) 98.15, Université Panthéon-Sorbonne (Paris 1).
  16. Crepon, B. & Duguet, E. & Kabla, I., 1995. "A Moderate Support to Schumpeterian Conjectures from Various Innovation Measures," Papiers d'Economie Mathématique et Applications, Université Panthéon-Sorbonne (Paris 1) 95.06, Université Panthéon-Sorbonne (Paris 1).
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