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Innovation and Performance in Manufacturing Industries: A Comparison of the Nordic Countries

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Author Info

  • Lööf, Hans

    ()
    (Royal Institute of Technology)

  • Heshmati, Almas

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

  • Asplund, Rita

    ()
    (The Research Institute of the Finnish Economy)

  • Nåås, Svein-Olav

    ()
    (Studies in technology)

Abstract

The availability of new internationally-harmonized innovation survey data collected from OECD countries has created some interesting opportunities for studying the following two key areas: (1) the determinants of innovation behavior at firm level, and (2) innovation as an important factor contributing to the economic growth. This paper looks at the relationship between innovation and productivity in Finland, Norway and Sweden at the firm level. Although these countries enjoy a high degree of political, social and cultural similarities, they differ largely from one another in their productivity growth and national innovation systems. The main objective here has been to examine how an identically-specified econometric model might work when the survey sampling and questionnaire are identical but the national data sets are estimated separately. Findings from the micro-based data in Europe known as Community Innovation Survey (CIS) data were subsequently investigated to see whether or not they contributed to explaining the presence of cross-country differences in aggregated productivity growth. Results reveal major discrepancies between the estimated firm-level results and the aggregated figures. Differences in the country regression results were investigated to see whether they were due to data errors, the econometric model, model specifications, estimation methods or unobservable country-specific effects. The tentative conclusion is that the representativeness of the respondent firms, the model specification and unobservable country-specific effects may partly account for the deviations between macro and micro levels.

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Bibliographic Info

Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 0457.

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Length: 38 pages
Date of creation: 06 Aug 2001
Date of revision:
Publication status: Published in ICFAI Journal of Management Research, 2003, pages 5-35.
Handle: RePEc:hhs:hastef:0457

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Keywords: Community Innovation Survey; CIS; cross-country comparisons; innovation; manufacturing; firms;

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References

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Citations

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Cited by:
  1. Emmanuel Duguet, 2006. "Innovation height, spillovers and tfp growth at the firm level: Evidence from French manufacturing," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 415-442.
  2. Iraj Hashi & Nebojsa Stojcic, 2010. "The Impact of innovation activities on firm performance using a multi-stage model: evidence from the Community Innovation Survey 4," CASE Network Studies and Analyses 410, CASE-Center for Social and Economic Research.
  3. Heikkilä, Anni, 2004. "The Regional Distribution of Professional Competence in Finland," Discussion Papers 961, The Research Institute of the Finnish Economy.
  4. Neil Thompson & Erik Stam, 2010. "Macroeconomic Dynamics and Innovation: SME innovation in the Netherlands, 1999-2009," Innovation Studies Utrecht (ISU) working paper series 10-03, Utrecht University, Department of Innovation Studies, revised May 2010.
  5. Pierre Mohnen & Pierre Therrien, 2005. "Comparing the Innovation Performance in Canadian, French and German Manufacturing Enterprises," CIRANO Working Papers 2005s-33, CIRANO.
  6. Kaushalesh Lal & Theo Dunnewijk, 2008. "Entrepreneurship and Innovation Strategies in ICT SMEs in Enlarged Europe (EU25)," Working Papers id:1645, eSocialSciences.
  7. Antonio Musolesi & Jean-Pierre Huiban, 2010. "Innovation and productivity in knowledge intensive business services," Journal of Productivity Analysis, Springer, vol. 34(1), pages 63-81, August.
  8. Jaan Masso & Priit Vahter, 2012. "The link between innovation and productivity in Estonia's services sector," The Service Industries Journal, Taylor & Francis Journals, vol. 32(16), pages 2527-2541, December.
  9. Hall, Bronwyn H., 2011. "Innovation and productivity," MERIT Working Papers 028, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  10. Iraj Hashi & Nebojša Stojčić, 2013. "Knowledge Spillovers, Innovation Activities, And Competitiveness Of Industries In Eu Member And Candidate Countries," Economic Annals, Faculty of Economics, University of Belgrade, vol. 58(198), pages 7-34, July - Se.
  11. Peters, Bettina & Lööf, Hans & Janz, Norbert, 2003. "Firm Level Innovation and Productivity: Is there a Common Story Across Countries?," ZEW Discussion Papers 03-26, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  12. Valeria Arza & Andres Lopez, 2010. "Innovation and Productivity in the Argentine Manufacturing Sector," Research Department Publications 4681, Inter-American Development Bank, Research Department.
  13. Emmanuel Duguet, 2004. "Are RαD subsidies a substitute or a complement to privately funded RαD ?. An econometric analysis at the firm level," Revue d'économie politique, Dalloz, vol. 0(2), pages 245-274.
  14. Jaan Masso & Priit Vahter, 2008. "Technological Innovation And Productivity In Late-Transition Estonia: Econometric Evidence From Innovation Surveys," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 61, Faculty of Economics and Business Administration, University of Tartu (Estonia).
  15. Jaakko Kiander & Elina Berghäll, 2003. "The Finnish Model of STI Policy: Experiences and Guidelines. KNOGG Thematic Network WP4 Country Report - Finland," Discussion Papers 313, Government Institute for Economic Research Finland (VATT).
  16. Chudnovsky, Daniel & Lopez, Andres & Pupato, German, 2006. "Innovation and productivity in developing countries: A study of Argentine manufacturing firms' behavior (1992-2001)," Research Policy, Elsevier, vol. 35(2), pages 266-288, March.
  17. María Angélica Arbeláez & Mónica Parra Torrado, 2009. "Innovation, R&D Investment and Productivity in Colombia," INFORMES DE INVESTIGACIÓN 009062, FEDESARROLLO.

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