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Does Innovation Help the Good or the Poor Performing Firms?

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  • Joze P. Damijan
  • Crt Kostevc
  • Matija Rojec

Abstract

Using firm-level innovation data for a large sample of Slovenian firms in the period 1996-2002, the paper finds surprising results that innovation is not benefitting all firms. We find that only manufacturing firms with below average productivity growth (the lowest four deciles) are likely to experience significant benefits from successful innovation, while faster growing firms do not extract any additional benefits from innovation. This evidence demonstrates how innovation can affect the observed convergence of firms in terms of productivity in the manufacturing sector.

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Bibliographic Info

Paper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 23009.

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Date of creation: 2009
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Handle: RePEc:lic:licosd:23009

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Keywords: research and development; innovation; knowledge spillovers; productivity growth;

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  1. Hall, Bronwyn H. & Mairesse, Jacques & Lotti, Francesca, 2006. "Employment, Innovation, and Productivity: Evidence from Italian Microdata," UNU-MERIT Working Paper Series 043, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
  2. Pierre Mohnen & Jacques Mairesse & Marcel Dagenais, 2006. "Innovativity: A Comparison Across Seven European Countries," CIRANO Working Papers 2006s-11, CIRANO.
  3. James Levinsohn & Amil Petrin, 2000. "Estimating Production Functions Using Inputs to Control for Unobservables," NBER Working Papers 7819, National Bureau of Economic Research, Inc.
  4. Rupert Harrison & Jordi Jaumandreu & Jacques Mairesse & Bettina Peters, 2008. "Does Innovation Stimulate Employment? A Firm-Level Analysis Using Comparable Micro-Data from Four European Countries," NBER Working Papers 14216, National Bureau of Economic Research, Inc.
  5. Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity Across Four European Countries," Oxford Review of Economic Policy, Oxford University Press, vol. 22(4), pages 483-498, Winter.
  6. Harrison, Rupert & Jaumandreu, Jordi & Mairesse, Jacques & Peters, Bettina, 2005. "Does innovation stimulate employment? A firm-level analysis using comparable micro data on four European countries," MPRA Paper 1245, University Library of Munich, Germany.
  7. Parisi, Maria Laura & Schiantarelli, Fabio & Sembenelli, Alessandro, 2006. "Productivity, innovation and R&D: Micro evidence for Italy," European Economic Review, Elsevier, vol. 50(8), pages 2037-2061, November.
  8. Bruno Crépon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation and Productivity : An Econometric Analysis at the Firm Level," Working Papers 98-33, Centre de Recherche en Economie et Statistique.
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Cited by:
  1. Piacentino, Davide, 2012. "Micro evidence for sources of innovation in European countries," MPRA Paper 39110, University Library of Munich, Germany.

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