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Innovation Performance of Firms in Manufacturing Industry: Evidence from Belgium, Finland and Germany in 1998-2000

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Author Info
Elina Seppä
Abstract

The objective of this study is to study whether the R&D expenditures in Finnish firms generate better innovation output than in Belgian and German firms following the studies of Mohnen et al. (2006) and Mohnen and Dagenais (2001) and using CIS 3 data on manufacturing firms in 1998?2000. First, we use generalised tobit model to scrutinise what factors impact the firm?s propensity to innovate and the amount of innovation output, the share of sales in innovative products. Second, we construct an innovation indicator based on the estimates of pooled regression and compare the expected innovation output to the observed innovation output in sample countries and industries. We find that innovativeness is overall largest in Germany whereas the results of Belgium and Finland are nearly equal. The most surprising country differences are found in the effects of public funding, which do not have any significant impact on innovation output in Finland, have a negative impact in Belgium and positive in Germany.

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Paper provided by Government Institute for Economic Research (VATT) in its series VATT Discussion Papers with number 414.

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Date of creation: 14 Feb 2007
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Handle: RePEc:fer:dpaper:414

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Keywords: Innovation R&D CIS innovativeness productivity innovation and technology policy

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This item is featured on the following reading lists:
  1. Socio-Economics of Innovation
References listed on IDEAS
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  1. Mairesse ,Jacques & Mohnen,Pierre, 2001. "To Be Or Not To Be Innovative: An Exercise In Measurement," Research Memoranda 038, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
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  2. Jacques Mairesse & Pierre Mohnen, 2002. "Accounting for Innovation and Measuring Innovativeness: An Illustrative Framework and an Application," American Economic Review, American Economic Association, vol. 92(2), pages 226-230, May. [Downloadable!] (restricted)
  3. Pierre Mohnen & Jacques Mairesse & Marcel Dagenais, 2006. "Innovativity: A comparison across seven European countries," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 15(4-5), pages 391-413, June. [Downloadable!] (restricted)
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  4. Duguet, E., 2000. "Knowledge Diffusion, Technological Innovation and TFP Growth at the Firm Level : Evidence from French Manufacturing," Papers 2000.105, Paris I - Economie Mathematique et Applications.
  5. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  6. Mansfield, Edwin, 1980. "Basic Research and Productivity Increase in Manufacturing," American Economic Review, American Economic Association, vol. 70(5), pages 863-73, December. [Downloadable!] (restricted)
  7. Mairesse,Jacques & Mohnen,Pierre, 2004. "The Importance of R&D for Innovation: A Reassessment Using French Survey Data," Research Memoranda 022, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
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  8. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research, Innovation and Productivity: an Econometric Analysis at the Firm Level," Papers 9833, Institut National de la Statistique et des Etudes Economiques-.
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  9. Marcel Dagenais & Pierre Mohnen, 2000. "Towards an Innovation Intensity Index: The Case of CIS 1 in Denmark and Ireland," CIRANO Working Papers 2000s-20, CIRANO. [Downloadable!]
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