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Product, Process and Organizational Innovation: Drivers, Complementarity and Productivity Effects

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  • Michael Polder
  • George van Leeuwen
  • Pierre Mohnen
  • Wladimir Raymond

Abstract

We propose a model where both R&D and ICT investment feed into a system of three innovation output equations (product, process and organizational innovation), which ultimately feeds into a productivity equation. We find that ICT investment and usage are important drivers of innovation in both manufacturing and services. Doing more R&D has a positive effect on product innovation in manufacturing. The strongest productivity effects are derived from organizational innovation. We find positive effects of product and process innovation when combined with an organizational innovation. There is evidence that organizational innovation is complementary to process innovation.

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Bibliographic Info

Paper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 10-24.

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Date of creation: 2010
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Handle: RePEc:aal:abbswp:10-24

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Web page: http://www.druid.dk/

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Keywords: Innovation; ICT; R&D; Productivity;

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References

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  1. Schmidt, Tobias & Rammer, Christian, 2007. "Non-technological and Technological Innovation: Strange Bedfellows?," ZEW Discussion Papers 07-052, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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  3. Raymond Wladimir & Mohnen, Pierre & Palm, Franz & Schim, van der Loeff, Sybrand, 2006. "Persistence of Innovation in Dutch Manufacturing: Is it Spurious?," Research Memorandum 009, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
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Citations

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Cited by:
  1. HANED Naciba & LE BAS Christian & MOTHE Caroline & NGUYEN Thi Thuc Uyen, 2012. "Firm technological innovation persistence: Organizational innovation matters," CEPS/INSTEAD Working Paper Series 2012-27, CEPS/INSTEAD.
  2. Naciba Haned & Christian Le Bas & Caroline Mothe & Uyen Nguyen, 2012. "Firm technological innovation persistence: Organizational innovation matters," Working Papers halshs-00703289, HAL.
  3. Leeuwen, George van & Mohnen, Pierre, 2013. "Revisiting the porter hypothesis: An empirical analysis of green innovation for the Netherlands," MERIT Working Papers 002, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  4. Zand, Fardad & Van Beers, Cees & Van Leeuwen, George, 2011. "Information technology, organizational change and firm productivity: A panel study of complementarity effects and clustering patterns in Manufacturing and Services," MPRA Paper 46469, University Library of Munich, Germany.
  5. Bertschek, Irene & Niebel, Thomas, 2013. "Mobile and more productive? Firm-level evidence on the productivity effects of mobile internet use at the early stage of diffusion," ZEW Discussion Papers 13-118, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  6. Federico Biagi, 2013. "ICT and Productivity: A Review of the Literature," JRC-IPTS Working Papers on Digital Economy, Institute of Prospective Technological Studies, Joint Research Centre 2013-09, Institute of Prospective Technological Studies, Joint Research Centre.
  7. Bertschek, Irene & Cerquera, Daniel & Klein, Gordon J., 2013. "More bits - more bucks? Measuring the impact of broadband internet on firm performance," DICE Discussion Papers 86, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  8. Van Leeuwen, George & Polder, Michael, 2013. "Linking ICT related Innovation Adoption and Productivity: results from micro-aggregated data versus firm-level data," MPRA Paper 46479, University Library of Munich, Germany.
  9. Hervas-Oliver, Jose-Luis & Sempere-Ripoll, Francisca & Boronat-Moll, Carles, 2012. "Process innovation objectives and management complementarities: patterns, drivers, co-adoption and performance effects," MERIT Working Papers 051, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  10. Rachel Bocquet & Christian Le Bas & Caroline Mothe & Nicolas Poussing, 2013. "Are firms with different CSR profiles equally innovative? Empirical analysis with survey data," Post-Print halshs-00737698, HAL.
  11. Ana Rincon & Michela VECCHI & Francesco VENTURINI, 2012. "ICT spillovers, absorptive capacity and productivity performance," Quaderni del Dipartimento di Economia, Finanza e Statistica, Università di Perugia, Dipartimento Economia, Finanza e Statistica 103/2012, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  12. Gérard Ballot & Fathi Fakhfakh & Fabrice Galia & Ammon Salter, 2011. "The Fateful Triangle Complementarities between product, process and organizational innovation in the UK and France," Working Papers halshs-00812141, HAL.
  13. Suresh Narayanan & Mehrshad Parvin Hosseini, 2014. "Drivers of Innovation in the Malaysian Services Sector: An Analysis Based on Firm-Level Data," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, Faculty of Economics and Administration, University of Malaya, vol. 6(1), pages 95-118, April.
  14. Francesco Venturini & Ana Rincon-Aznar & Dr Michela Vecchi, 2013. "ICT as a general purpose technology: spillovers, absorptive capacity and productivity performance," NIESR Discussion Papers, National Institute of Economic and Social Research 11717, National Institute of Economic and Social Research.
  15. Bert Sadowski, 2014. "Business ICT Adoption and Open Access: The Example of SMEs at Industrial Parks in the Netherlands," Working Papers, Eindhoven Center for Innovation Studies 14-04, Eindhoven Center for Innovation Studies, revised Feb 2014.
  16. Jan de Kok & Sophie Doove & Peter Oeij & Karolus Kraan, 2014. "Scale effects in workplace innovations," Scales Research Reports, EIM Business and Policy Research H201402, EIM Business and Policy Research.

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