On The Role Of Process Innovations On Smes Productivity Growth?
AbstractIn 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.
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Bibliographic InfoPaper 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:
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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)
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