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Dynamic Models of R&D, Innovation and Productivity: Panel Data Evidence for Dutch and French Manufacturing

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  • Wladimir Raymond
  • Jacques Mairesse
  • Pierre Mohnen

    ()

  • Franz Palm

Abstract

This paper introduces dynamics in the R&D to innovation and innovation to productivity relationships, which have mostly been estimated on cross-sectional data. It considers four nonlinear dynamic simultaneous equations models that include individual effects and idiosyncratic errors correlated across equations and that differ in the way innovation enters the conditional mean of labor productivity: through an observed binary indicator, an observed intensity variable or through the continuous latent variables that correspond to the observed occurrence or intensity. It estimates these models by full information maximum likelihood using two unbalanced panels of Dutch and French manufacturing firms from three waves of the Community Innovation Survey. The results provide evidence of robust unidirectional causality from innovation to productivity and of stronger persistence in productivity than in innovation. Dans ce papier, nous introduisons de la dynamique dans le modèle Crépon-Duguet-Mairesse (CDM), à la fois entre la R-D et l’innovation et entre l’innovation et la productivité. Le modèle CDM a généralement été estimé sur des données en coupe transversale. Nous proposons quatre modèles dynamiques à équations simultanées avec des effets individuels et des effets idiosyncratiques corrélés entre équations. Ces modèles diffèrent dans la façon dont l’innovation apparaît dans l’équation de productivité : à travers une variable binaire ou une variable continue, et à travers une mesure observée ou une mesure latente de l’innovation. Les modèles sont estimés par maximum de vraisemblance sur des données panel d’entreprises françaises et néerlandaises provenant de trois vagues des enquêtes communautaires d’innovation. Les résultats sont robustes et montrent que la causalité est unidirectionnelle allant de l’innovation à la productivité, et que la persistance est plus forte dans la productivité que dans l’innovation.

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Paper provided by CIRANO in its series CIRANO Working Papers with number 2013s-12.

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Date of creation: 01 May 2013
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Handle: RePEc:cir:cirwor:2013s-12

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Keywords: R&D; Innovation; Productivity; Panel data; Dynamics; Simultaneous equations; R-D; innovation; productivité; données panel; dynamique; équations simultanées;

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