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Innovation, Adoption, Ownership, and Productivity: Evidence from Ukraine

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Author Info

  • J. David Brown
  • John S. Earle
  • Hanna Vakhitova
  • Vitaliy Zheka

Abstract

How do new and foreign firms achieve superior productivity? Do they conduct more and better R&D? Or do they distinguish themselves through computerization and organizational capital? We investigate the determinants of and returns to several types of investment, using a panel of over 40,000 Ukrainian industrial firms in 2000-2007. Foreign firms engage in more non-technological investment and IT and less in R&D than domestic private firms. Similarly, new firms invest more in non-technological capital and IT and less in R&D than initially state-owned firms. Productivity gains from R&D and non-technology investment are insignificantly different across ownership types, whereas foreign firms achieve much higher returns to IT investment than other firms. These results suggest that foreign firms outperform others via organizational capital that is better able to exploit IT investment. New firm productivity growth is a result of higher investment volume rather than investment efficiency.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.353280.de/diw_escirru0018.pdf
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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series ESCIRRU Working Papers with number 18.

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Length: 19 p.
Date of creation: 2010
Date of revision:
Handle: RePEc:diw:diwesc:diwesc18

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Related research

Keywords: R&D; information technology; foreign ownership; transition; Eastern Europe; Ukraine;

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Cited by:
  1. Correa, Paulo & Andres, Luis & Borja-Vega, Christian, 2013. "The impact of government support on firm R&D investments : a meta-analysis," Policy Research Working Paper Series 6532, The World Bank.

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