The Productivity Of Innovation In Portugal
AbstractWe view innovation as a productive process, with outputs and inputs. We aim at compare the productivity of innovation across the twenty seven Member States of the European Union (EU-27), having a particular focus on Portugal. The data on inputs and outputs of innovation were collected from the Innovation Union Scoreboard 2010 report and covers the EU-27 Member States, from 2006 to 2010. The Total Factor Productivity index (TFP index) was used as the technique for data analysis. The choice of this technique was mainly determined by its flexibility and by data constraints. Two types of TFP indexes were computed: i) TFPt (time), which compares the productivity of innovation in each Member State with its productivity in a base year; ii) TFPs (space), which compares the productivity of innovation in each Member State with the productivity of the EU-27 average. Results show larger TFPs differences across Member States than TFPt differences. Concerning TFPt, there is a reduction of productivity of most of the Member States during the time length, which can be explained by the recent world financial crisis. This was the case of Portugal, where average TFPt in the time length is slightly below 1. The seven Member States that did not lose any productivity are mostly from Eastern Europe, Member Sates which have entered the European Union and accede to its structural funds more recently. Concerning TFPs, Portugal presents average TFPs well above 1. The Portuguese average TFPs value is close to the one of Germany and higher than the one of Sweden. The Innovation Union Scoreboard 2010 report classifies Portugal as Moderate innovator and Germany and Sweden as innovation leaders. We conclude that productivity of innovation in Portugal is similar to the one of Germany and higher than the one of Sweden. Differences between Portugal and those Member States, such as the ones reported in the Innovation Union Scoreboard 2010, can be explained by the fact of Portugal having fewer resources allocated to innovation and thus fewer outputs from innovation than Germany or Sweden have.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Faculdade de Economia e Gestão, Universidade Católica Portuguesa (Porto) in its series Working Papers de Economia (Economics Working Papers) with number 05.
Length: 10 pages
Date of creation: Nov 2012
Date of revision:
TFP index; productivity; innovation;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-12-06 (All new papers)
- NEP-EFF-2012-12-06 (Efficiency & Productivity)
- NEP-INO-2012-12-06 (Innovation)
- NEP-KNM-2012-12-06 (Knowledge Management & Knowledge Economy)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kulshreshtha, Mudit & Parikh, Jyoti K., 2001. "A study of productivity in the Indian coal sector," Energy Policy, Elsevier, vol. 29(9), pages 701-713, July.
- Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
- Hooper, P.G & Hensher, D.A, 1997. "Measuring total factor productivity of airports-- an index number approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 33(4), pages 249-259, December.
- Inha Oh & Jeong-Dong Lee & Almas Heshmati, 2008. "Total Factor Productivity in Korean Manufacturing Industries," Global Economic Review, Taylor & Francis Journals, vol. 37(1), pages 23-50.
- Keith Fuglie, 2004.
"Productivity growth in Indonesian agriculture, 1961-2000,"
Bulletin of Indonesian Economic Studies,
Taylor & Francis Journals, vol. 40(2), pages 209-225.
- Fuglie, Keith O., 2003. "Productivity Growth in Indonesian Agriculture, 1961-2000," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57868, Australian Agricultural and Resource Economics Society.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ricardo Goncalves).
If references are entirely missing, you can add them using this form.