On The Role Of Process Innovations On Smes Productivity Growth?
Abstract
In this paper we explore in depth the effect of process innovations on total factor productivity growth for small and medium enterprises (SMEs), taking into account the potential endogeneity problem that may be caused by self selection into these activities. First, we analyse whether the ex-ante most productive SMEs are those that start introducing process innovations; then, we test whether process innovations boost SMEs productivity growth using matching techniques to control for the possibility that selection into introducing process innovations may not be a random process. We use a sample of Spanish manufacturing SMEs for the period 1991-2002, drawn from the Encuesta sobre Estrategias Empresariales. Our results show that the introduction of process innovations yields an extra productivity growth, and that the life span of this extra productivity growth lasts for only one period.Download Info
If 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 Info
Paper provided by Department of Applied Economics II, Universidad de Valencia in its series Working Papers with number 1125.Length: 57 pages
Date of creation: Dec 2011
Date of revision:
Handle: RePEc:eec:wpaper:1125
Contact details of provider:
Postal: Edifici Departamental Oriental, Campus dels Tarongers, Avda. dels Tarongers, S/N (4P15), 46022 - València
Phone: 963 82 83 49
Fax: 963 82 83 54
Email:
Web page: http://www.estructuraeconomica.es
More information through EDIRC
Related research
Keywords: Process innovations; TFP; stochastic dominance; matching techniques;Find related papers by JEL classification:
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-01-03 (All new papers)
- NEP-EFF-2012-01-03 (Efficiency & Productivity)
- NEP-ENT-2012-01-03 (Entrepreneurship)
- NEP-SBM-2012-01-03 (Small Business Management)
References
References listed on IDEASPlease 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.:
- Lee, Chang-Yang & Sung, Taeyoon, 2005. "Schumpeter's legacy: A new perspective on the relationship between firm size and R&D," Research Policy, Elsevier, vol. 34(6), pages 914-931, August.
- Zoltan Acs & David Audretsch, 1990. "Innovation and Small Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011131.
- Bronwyn H. Hall, 2003.
"The Financing of Research and Development,"
Finance
0303003, EconWPA.
- Bronwyn H. Hall, 2002. "The Financing of Research and Development," Oxford Review of Economic Policy, Oxford University Press, vol. 18(1), pages 35-51, Spring.
- Hall, Bronwyn H., 2002. "The Financing of Research and Development," Department of Economics, Working Paper Series qt34c1c643, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Bronwyn H. Hall, 2002. "The Financing of Research and Development," NBER Working Papers 8773, National Bureau of Economic Research, Inc.
- Hall, Bronwyn, 2002. "The Financing of Research and Development," Department of Economics, Working Paper Series qt5rf0x9gz, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Baldwin, John R., 1997. "The Importance of Research and Development for Innovation in Small and Large Canadian Manufacturing Firms," Analytical Studies Branch Research Paper Series 1997107e, Statistics Canada, Analytical Studies Branch.
- Jaumandreu, Jordi & González, X., .
"Threshold effects in product R&D decisions: theoretical framework and empirical analysis,"
Open Access publications from Universidad Carlos III de Madrid
info:hdl:10016/5261, Universidad Carlos III de Madrid.
- Xulia González & Jordi Jaumandreu, . "Threshold effects in product R&D decisions: theoretical framework and empirical analysis," Studies on the Spanish Economy 78, FEDEA.
- Xulia González & Jordi Jaumandreu, . "Threshold effects in product R&D decisions: theoretical framework and empirical analysis," Studies on the Spanish Economy 45, FEDEA.
- Sascha O. Becker & Peter Egger, 2007.
"Endogenous Product versus Process Innovation and a Firm’s Propensity to Export,"
CESifo Working Paper Series
1906, CESifo Group Munich.
- Sascha Becker & Peter Egger, 2013. "Endogenous product versus process innovation and a firm’s propensity to export," Empirical Economics, Springer, vol. 44(1), pages 329-354, February.
- González, X. & Jaumandreu, Jordi & Pazó, C., . "Innovación, costes irrecuperables e incentivos a la Í+D," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/5305, Universidad Carlos III de Madrid.
- Bruno Crépon & Emmanuel Duguet & Jacques Mairesse, 1998.
"Research, Innovation and Productivity : An Econometric Analysis at the Firm Level,"
Working Papers
98-33, Centre de Recherche en Economie et Statistique.
- Bruno Crepon & Emmanuel Duguet & Jacques Mairessec, 1998. "Research, Innovation And Productivi[Ty: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 7(2), pages 115-158.
- Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation, and Productivity: An Econometric Analysis at the Firm Level," NBER Working Papers 6696, National Bureau of Economic Research, Inc.
- Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006.
"Innovation and Productivity Across Four European Countries,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 22(4), pages 483-498, Winter.
- Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity across Four European Countries," NBER Working Papers 12722, National Bureau of Economic Research, Inc.
- Parisi, Maria Laura & Schiantarelli, Fabio & Sembenelli, Alessandro, 2006. "Productivity, innovation and R&D: Micro evidence for Italy," European Economic Review, Elsevier, vol. 50(8), pages 2037-2061, November.
- Davies, Stephen W., 1979. "Inter-firm diffusion of process innovations," European Economic Review, Elsevier, vol. 12(4), pages 299-317, October.
- Imbens, Guido & Abadie, Alberto, 2008.
"On the Failure of the Bootstrap for Matching Estimators,"
Scholarly Articles
3043415, Harvard University Department of Economics.
- Alberto Abadie & Guido W. Imbens, 2008. "On the Failure of the Bootstrap for Matching Estimators," Econometrica, Econometric Society, vol. 76(6), pages 1537-1557, November.
- Alberto Abadie & Guido W. Imbens, 2006. "On the Failure of the Bootstrap for Matching Estimators," NBER Technical Working Papers 0325, National Bureau of Economic Research, Inc.
- María Rochina-Barrachina & Juan Mañez & Juan Sanchis-Llopis, 2010. "Process innovations and firm productivity growth," Small Business Economics, Springer, vol. 34(2), pages 147-166, February.
- repec:fth:inseep:9833 is not listed on IDEAS
- Huergo, Elena & Jaumandreu, Jordi, 2004. "Firms' age, process innovation and productivity growth," International Journal of Industrial Organization, Elsevier, vol. 22(4), pages 541-559, April.
Citations
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:eec:wpaper:1125For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Silviano Esteve).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.

