Technological Innovation And Productivity In Late-Transition Estonia: Econometric Evidence From Innovation Surveys

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Technological Innovation And Productivity In Late-Transition Estonia: Econometric Evidence From Innovation Surveys

Author Info

Jaan Masso
Priit Vahter

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Jaan Masso

Abstract

There is growing interest in modelling the relationship between innovation and productivity in developing and transition econo¬mies due to their attempts to establish knowledge-based economies and to increase business R&D. Our paper investigates whether there is a signi¬ficant relationship between technological innovation and pro¬ductivity in the manufacturing sector of Estonia. We use firm-level data for the analysis from two waves of Community Innovation Surveys (CIS3 and CIS4) from 1998–2000 and 2002–2004, which is then combined with financial data about firms from the Estonian Business Register in order to study the effect of innovation at higher leads. We apply a structural model that in¬volves a system of equations on innovation expenditure, inno¬vation outcome and productivity. Our results show that during 1998–2000 only product innovation increased productivity, while in 2002–2004 only process innovation had a positive effect on productivity. This can probably be explained by the different macroeconomic conditions in the two periods.

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Publisher Info
Paper provided by Faculty of Economics and Business Administration, University of Tartu (Estonia) in its series University of Tartu - Faculty of Economics and Business Administration Working Paper Series with number 61.

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Length: 51 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:mtk:febawb:61

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Find related papers by JEL classification:
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General

This paper has been announced in the following NEP Reports:

NEP-ALL-2008-05-10 (All new papers)
NEP-EFF-2008-05-10 (Efficiency & Productivity)
NEP-INO-2008-05-10 (Innovation)
NEP-IPR-2008-05-10 (Intellectual Property Rights)
NEP-MIC-2008-05-10 (Microeconomics)
NEP-TRA-2008-05-10 (Transition Economics)

References listed on IDEAS
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Jose Miguel Benavente, 2006. "The role of research and innovation in promoting productivity in chile," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 15(4-5), pages 301-315, June. [Downloadable!] (restricted)
Paul A. David & Bronwyn H. Hall & Andrew A. Toole, 2000. "Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence," Development and Comp Systems 9912002, EconWPA. [Downloadable!]
Other versions:
- Paul A. David & Bronwyn H. Hall & Andrew A. Toole, 1999. "Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence," NBER Working Papers 7373, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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- Paul A. David, Bronwyn H. Hall and Andrew A. Toole., 1999. "Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence," Economics Working Papers E99-269, University of California at Berkeley. [Downloadable!]
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Johannes Stephan, 2004. "The Productivity Gap between East and West Europe: What Role for Sectoral Structures during Integration?," Development and Comp Systems 0403004, EconWPA. [Downloadable!]
Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation, and Productivity: An Econometric Analysis at the Firm Level," NBER Working Papers 6696, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Other versions:
- 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-.
Priit Vahter, 2006. "Productivity in Estonian enterprises: the role of innovation and competition," Bank of Estonia Working Papers 2006-07, Bank of Estonia, revised 11 Dec 2006. [Downloadable!]
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Other versions:
- James Levinsohn & Amil Petrin, 2000. "Estimating Production Functions Using Inputs to Control for Unobservables," NBER Working Papers 7819, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Cohen, Wesley M & Klepper, Steven, 1996. "A Reprise of Size and R&D," Economic Journal, Royal Economic Society, vol. 106(437), pages 925-51, July. [Downloadable!] (restricted)
Janz, Norbert & Lööf, Hans & Peters, Bettina, 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. [Downloadable!]
Other versions:
- Janz, Norbert & Lööf, Hans & Peters, Bettina, 2004. "Firm Level Innovation and Productivity - Is there a Common Story Across Countries?," Working Paper Series in Economics and Institutions of Innovation 24, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies. [Downloadable!]
Mario Pianta & Andrea Vaona, 2007. "Innovation and Productivity in European Industries," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 16(7), pages 485-499. [Downloadable!] (restricted)
Other versions:
- Mario Pianta & Andrea Vaona, 2006. "Innovation and Productivity in European Industries," Kiel Working Papers 1283, Kiel Institute for the World Economy. [Downloadable!]
- Mario Pianta & Andrea Vaona, 2006. "Innovation and productivity in European industries," Working Papers 34, Università di Verona, Dipartimento di Scienze economiche. [Downloadable!]

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