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The joint impact of different types of innovation on firm's productivity: evidence from Italy

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  • Luigi Aldieri
  • Cristian Barra
  • Concetto Paolo Vinci
  • Roberto Zotti

Abstract

This paper explores the firm-level relationship between product, process, organizational and marketing innovation activities and firm productivity. We propose a structural model that relates R&D decisions, innovation activities, and productivity by using a version of the model developed by [Crépon, B., E. Duguet, and J. Mairesse. (1998). “Research, Innovation and Productivity: An Econometric Analysis at the Firm Level.” Economics of Innovation and New Technology 7: 115–158] and empirically analyze the drivers of firms’ innovation strategies as well as which combination has effects on firm's economic productivity. Results show that R&D expenditures are an important predictor of all types of innovation as well as an important indirect driver of firm productivity through innovation activities. Both process and product innovation have positive effects on firm's economic productivity, especially when they are jointly conducted. Organizational activities are beneficial also for other types of innovation and especially for process innovation. The introduction of a new product on the market may raise productivity if complemented by marketing innovations. Results are driven by firms that have invested the most in new equipment and machinery.

Suggested Citation

  • Luigi Aldieri & Cristian Barra & Concetto Paolo Vinci & Roberto Zotti, 2021. "The joint impact of different types of innovation on firm's productivity: evidence from Italy," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 30(2), pages 151-182, February.
    • Handle: RePEc:taf:ecinnt:v:30:y:2021:i:2:p:151-182
    DOI: 10.1080/10438599.2019.1685211
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    Cited by:

    1. Salvatore Di Novo & Giorgio Fazio & Jonathan Sapsed & Josh Siepel, 2022. "Starving the golden goose? Access to finance for innovators in the creative industries," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 46(2), pages 345-386, June.
    2. Adel Ben Khalifa, 2023. "Impact of research and development (R&D) and information, and communication technology (ICT) on innovation and productivity evidence from Tunisian manufacturing firms," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(2), pages 341-361, April.
    3. Cristian Barra & Nazzareno Ruggiero, 2023. "Quality of Government and Types of Innovation—Empirical Evidence for Italian Manufacturing Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1749-1789, June.
    4. Cristian Barra & Nazzareno Ruggiero, 2022. "How do dimensions of institutional quality improve Italian regional innovation system efficiency? The Knowledge production function using SFA," Journal of Evolutionary Economics, Springer, vol. 32(2), pages 591-642, April.

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