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Innovation and productivity in manufacturing and service firms in Catalonia: a regional approach

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  • Agusti Segarra-Blasco
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    Abstract

    This article analyses the determinants of research and development (R&D) and the role of innovation on labour productivity in Catalan firms. Our empirical analysis found a considerable heterogeneity in firm performances between the manufacturing and service industries and between low- and high-tech industries. The frontiers that separate manufacturing and service industries are increasingly blurred. In Catalonia high-tech knowledge-intensive services (KIS) play a strategic role in promoting innovation in both manufacturing and service industries, and driving growth throughout the regional economy. Empirical results show new firms created during the period 2002-2004 that have a greater R&D intensity than incumbent firms (54.1% in high-tech manufacturing industries and 68.8% in high-tech KIS). Small and young firms in the high-tech KIS sector are very prone to carrying out R&D and they invest more in innovation projects. R&D expenditures, output innovation, investment in physical capital, market share and export have positive effects on labour productivity in both the manufacturing and service sectors. Firm size, on the other hand, has a positive effect on productivity in manufacturing industries but not in services.

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    Bibliographic Info

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

    Volume (Year): 19 (2010)
    Issue (Month): 3 ()
    Pages: 233-258

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    Handle: RePEc:taf:ecinnt:v:19:y:2010:i:3:p:233-258

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    Keywords: innovation; R&D; productivity; knowledge-intensive services;

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    Cited by:
    1. Esther Goya & Esther Vayá & Jordi Suriñach, 2012. "“Do intra- and inter-industry spillovers matter? CDM model estimates for Spain”," IREA Working Papers, University of Barcelona, Research Institute of Applied Economics 201214, University of Barcelona, Research Institute of Applied Economics, revised Sep 2012.
    2. Ortega-Argilés, Raquel & Piva, Mariacristina & Vivarelli, Marco, 2011. "Productivity Gains from R&D Investment: Are High-Tech Sectors Still Ahead?," IZA Discussion Papers 5975, Institute for the Study of Labor (IZA).
    3. Maria Manuela Natário & João Pedro Couto & Ascensão Maria Braga & Teresa Maria Tiago, 2011. "Dynamics of innovation in European regions," ERSA conference papers, European Regional Science Association ersa11p466, European Regional Science Association.
    4. Mercedes Teruel & Agustí Segarra, 2011. "Productivity and R&D sources in manufacturing and service firms in Catalonia: a regional approach," ERSA conference papers, European Regional Science Association ersa11p1860, European Regional Science Association.
    5. Gombau, Verònica & Segarra Blasco, Agustí, 2011. "Innovation and absorptive capacity: What is the role of technological frontier?," Working Papers, Universitat Rovira i Virgili, Department of Economics 2072/179622, Universitat Rovira i Virgili, Department of Economics.
    6. Esther Goya & Esther Vayá & Jordi Suriñach, 2011. "Productivity and innovation spillovers: Micro evidence from Spain," IREA Working Papers, University of Barcelona, Research Institute of Applied Economics 201126, University of Barcelona, Research Institute of Applied Economics, revised Dec 2011.

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