Beyond the R&D effects on innovation: the contribution of non-R&D activities to TFP growth in the EU
AbstractA significant part of the innovation efforts carried out across very heterogeneous economies in Europe is under the form of Non-R&D innovation activities. But the traditional macro approach to the determinants of TFP does not handle this issue appropiately. This paper has proposed and estimated an augmented macro-theoretical model to the determinants of total factor productivity (TFP) by jointly considering the effects of R&D endowments and the impact of Non-R&D innovation activities on …firms´ levels of productivity. The estimation of the model for a sample of EU26 countries covering the period 2004-2008 shows that the distinction between R&D and Non-R&D endowments really matters for a number of different issues. First, the results show a sizable differential impact of these endowments on TFP growth, being the impact of R&D twice as big as the impact of Non-R&D. Second, absorptive capacity is only linked to R&D endowments. And third, the two types of endowments cannot strictly been seen as complements at least for the case of countries with high R&D intensities or high Non-R&D intensities.
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Bibliographic InfoPaper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2014/16.
Length: 34 pages
Date of creation: 2014
Date of revision:
TFP; R&D; Non-R&D expenditures; EU countries;
Find related papers by JEL classification:
- O0 - Economic Development, Technological Change, and Growth - - General
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
This paper has been announced in the following NEP Reports:
- NEP-ACC-2014-04-18 (Accounting & Auditing)
- NEP-ALL-2014-04-18 (All new papers)
- NEP-CSE-2014-04-18 (Economics of Strategic Management)
- NEP-EFF-2014-04-18 (Efficiency & Productivity)
- NEP-EUR-2014-04-18 (Microeconomic European Issues)
- NEP-GRO-2014-04-18 (Economic Growth)
- NEP-INO-2014-04-18 (Innovation)
- NEP-KNM-2014-04-18 (Knowledge Management & Knowledge Economy)
- NEP-SBM-2014-04-18 (Small Business Management)
- NEP-TID-2014-04-18 (Technology & Industrial Dynamics)
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