What explains the evolution of productivity and competitiveness? The innovation link
AbstractThis paper addresses the recent evolution of productivity and competitiveness in Catalonia and their links with the innovation activity of firms. Firstly, it summarizes the evolution of productivity, competitiveness, firms' strategies and the state of innovation. A slowdown in productivity growth and increasing revealed difficulties in some world markets are real, and the weakness of innovation may be a reason. The paper then quantifies some of the links between innovation, productivity and competitiveness. Innovation has a positive impact on productivity and competitiveness. First of all, innovation expenditures induce cost advantages and these cost advantages are a significant explanation for firms' exports. Furthermore, product innovation helps exports, too. Moreover, R&D activities in Catalonia benefit from high spillovers, and productivity impact is even higher when firms develop R&D activities outside as well. Despite all this, the current level of innovation expenditure is comparatively low and shows signs of lack of dynamism. Firms need to switch from the current equilibrium to the requirements of the coming years.
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Bibliographic InfoPaper provided by IESE Business School in its series IESE Research Papers with number D/804.
Length: 40 pages
Date of creation: 17 Jul 2009
Date of revision:
Labor productivity; Competitiveness; innovation; cost;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-21 (All new papers)
- NEP-CSE-2009-11-21 (Economics of Strategic Management)
- NEP-EFF-2009-11-21 (Efficiency & Productivity)
- NEP-INO-2009-11-21 (Innovation)
- NEP-KNM-2009-11-21 (Knowledge Management & Knowledge Economy)
- NEP-MIC-2009-11-21 (Microeconomics)
- NEP-SBM-2009-11-21 (Small Business Management)
- NEP-TID-2009-11-21 (Technology & Industrial Dynamics)
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.:
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