Advanced Search
MyIDEAS: Login to save this paper or follow this series

Knowledge Capital and Performance Heterogeneity: A Firm Level Innovation Study

Contents:

Author Info

  • Lööf, Hans

    ()
    (Industrial Economics and Management)

  • Heshmati, Almas

    ()
    (Dept. of Economic Statistics, Stockholm School of Economics)

Abstract

This paper is an empirical analysis of knowledge capital and performance heterogeneity at the firm level. We apply new econometric methods to extensive data on innovation and innovative activities in Swedish manufacturing. Knowledge capital, defined as the ratio of innovation sales to total sales, is found to be a significant factor contributing to the performance heterogeneity among firms. A number of interesting results emerge. First, the results show that there is a two-way and positive relationship between firm performance and knowledge capital. This relationship holds even when we control for human capital, type of output, firm size, capital intensity, entry, merger, partial closure or exit of firms. Second, the elasticity of productivity growth with respect to knowledge capital is doubled when all innovations are substituted for radical innovations. Third, knowledge capital rises with innovation input per employee. Fourth, profitability is important for the willingness of firms to invest in innovative activities. Fifth, when controlling for differences in innovation investments and human capital, knowledge intense firms are not more innovative than labor and capital intense firms. Finally, organizational rigidities in innovation projects are found to have a significant negative impact on innovation output.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 387.

as in new window
Length: 31 pages
Date of creation: 13 Jun 2000
Date of revision: 14 Aug 2000
Publication status: Published in International Journal of Production Economics, 2002, pages 61-85.
Handle: RePEc:hhs:hastef:0387

Contact details of provider:
Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
Phone: +46-(0)8-736 90 00
Fax: +46-(0)8-31 01 57
Email:
Web page: http://www.hhs.se/
More information through EDIRC

Related research

Keywords: Knowledge capital; performance heterogeneity; innovation; manufacturing; firms;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:hhs:hastef:0387. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helena Lundin).

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.