Productivity effects of innovation modes
AbstractMany empirical studies have confirmed the positive impact of innovation on productivity at the firm level. The focus tends to be either on R&D driven techno-logical innovation on the one hand, or on organisational changes complemented by ICT on the other. To investigate the effect of different types of innovations on produc-tivity, we propose a model with two innovation input equations (R&D and ICT) that feed into a knowledge production function consisting of a system of three innovation output equations (product innovation, process innovation and organisational innova-tion), which ultimately feeds into a productivity equation. We find that ICT is an im-portant driver of innovation in both manufacturing and services. Doing more R&D has a positive effect on product innovation in manufacturing. Organisational innova-tion has the strongest productivity effects. We only find positive effects of product and process innovation when combined with an organisational innovation.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 18893.
Date of creation: 2009
Date of revision:
technological innovation; non-technological innovation; ICT; R&D; productivity; trivariate probit; CDM model;
Find related papers by JEL classification:
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-12-05 (All new papers)
- NEP-CSE-2009-12-05 (Economics of Strategic Management)
- NEP-EFF-2009-12-05 (Efficiency & Productivity)
- NEP-INO-2009-12-05 (Innovation)
- NEP-INT-2009-12-05 (International Trade)
- NEP-IPR-2009-12-05 (Intellectual Property Rights)
- NEP-KNM-2009-12-05 (Knowledge Management & Knowledge Economy)
- NEP-SBM-2009-12-05 (Small Business Management)
- NEP-TID-2009-12-05 (Technology & Industrial Dynamics)
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