Innovation, investment and productivity: evidence from Spanish firms
AbstractIn this paper we analyze the role of replacement and innovation activity in shaping investment behavior and labor productivity in a panel of Spanish manufacturing firms from 1990 to 2001. Investment is concentrated about large investment episodes, or investment spikes, whose nature varies by observable firm characteristics. We find evidence of replacement activity as a determinant of investment spikes for those firms that are not involved in process innovation nor plant expansion. Then we explore how large investment episodes transmit into the evolution of labor productivity under different innovative strategies. We find that expansionary and innovative firms increase their productivity after an investment spike. However, long learning curves seems to be associated with innovative investments.
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Bibliographic InfoPaper provided by European University Institute in its series Economics Working Papers with number ECO2004/07.
Date of creation: 2004
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investment spikes; machine replacement; technological innovation; labor productivity; learning effects;
Find related papers by JEL classification:
- E22 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
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- Marco Grazzi & Nadia Jacoby & Tania Treibich, 2013.
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