The link between innovation and productivity in Estonia's services sector
AbstractThis paper investigates how the innovation--productivity relationship differs across various sub-branches of the services sector. The Crépon, Duguet and Mairesse structural model is used, consisting of equations for innovation expenditures, innovation output, productivity and exports. The data are taken from the Community Innovation Surveys for Estonia. It is shown that innovation is associated with increased productivity. The results indicate, surprisingly, that the association between technological innovation and productivity is stronger in the less knowledge-intensive service (KIS) sectors. Non-technological innovation plays a positive role especially in KISs. An indirect channel of the effects of innovation on productivity appears to function through increased exports.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal The Service Industries Journal.
Volume (Year): 32 (2012)
Issue (Month): 16 (December)
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Other versions of this item:
- Priit Vahter & Jaan Masso, 2011. "The Link between Innovation and Productivity in Estonia’s Service Sectors," William Davidson Institute Working Papers Series wp1012, William Davidson Institute at the University of Michigan.
- Jaan Masso & Priit Vahter, 2011. "The Link Between Innovation And Productivity In Estonian Service Sector," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 80, Faculty of Economics and Business Administration, University of Tartu (Estonia).
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- L80 - Industrial Organization - - Industry Studies: Services - - - General
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