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R&D, innovation and productivity, and the CIS: sampling, specification and comparability issues

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  • Criscuolo, Chiara
  • Mariagrazia, Squicciarini
  • Olavi, Lehtoranta

Abstract

We construct and estimate a modified version of the Crépon, Duguet and Mairesse (1998) model to investigate the links between R&D, innovation output and productivity. We propose a model specification that, among other features, aims to better capture the variance component of the cooperation and obstacles to innovation variables. Results based on Finnish CIS data support this alternative specification and highlight the role of process innovations. We also address comparability over time within the same country, by comparing Finnish CIS3 and CIS4 estimates. Despite CIS harmonisation, both sample selection issues and nuances in the specification of the variables prove to have a profound effect on the results, and question the validity of this currently popular comparison exercises.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 39261.

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Date of creation: 2010
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Handle: RePEc:pra:mprapa:39261

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Related research

Keywords: R&D; innovation; productivity; CIS; sample selection; comparability;

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References

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  1. 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, Elsevier, vol. 35(2), pages 266-288, March.
  2. Klette, Tor Jakob & Kortum, Samuel S, 2002. "Innovating Firms and Aggregate Innovation," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3248, C.E.P.R. Discussion Papers.
  3. Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity across Four European Countries," NBER Working Papers 12722, National Bureau of Economic Research, Inc.
  4. 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.
  5. Ariel Pakes & Zvi Griliches, 1982. "Estimating Distributed Lags in Short Panels with an Application to the Specification of Depreciation Patterns and Capital Stock Constructs," NBER Working Papers 0933, National Bureau of Economic Research, Inc.
  6. Zvi Griliches, 1998. "The Search for R&D Spillovers," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 251-268 National Bureau of Economic Research, Inc.
  7. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  8. Parisi, Maria Laura & Schiantarelli, Fabio & Sembenelli, Alessandro, 2006. "Productivity, innovation and R&D: Micro evidence for Italy," European Economic Review, Elsevier, Elsevier, vol. 50(8), pages 2037-2061, November.
  9. Hall, Bronwyn H. & Mairesse, Jacques, 1995. "Exploring the relationship between R&D and productivity in French manufacturing firms," Journal of Econometrics, Elsevier, Elsevier, vol. 65(1), pages 263-293, January.
  10. Griffith, Rachel & Redding, Stephen J & Van Reenen, John, 2000. "Mapping The Two Faces Of R&D: Productivity Growth In A Panel Of OECD Industries," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2457, C.E.P.R. Discussion Papers.
  11. Zvi Griliches, 1998. "R&D and Productivity: The Econometric Evidence," NBER Books, National Bureau of Economic Research, Inc, number gril98-1, October.
  12. Odagiri, Hiroyuki, 1985. "Research activity, output growth and productivity increase in Japanese manufacturing industries," Research Policy, Elsevier, Elsevier, vol. 14(3), pages 117-130, June.
  13. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications, Université Panthéon-Sorbonne (Paris 1) 98.15, Université Panthéon-Sorbonne (Paris 1).
  14. Cefis, Elena, 2003. "Is there persistence in innovative activities?," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 21(4), pages 489-515, April.
  15. Dosi, Giovanni, 1988. "Sources, Procedures, and Microeconomic Effects of Innovation," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1120-71, September.
  16. Loof, Hans & Heshmati, Almas, 2002. "Knowledge capital and performance heterogeneity: : A firm-level innovation study," International Journal of Production Economics, Elsevier, Elsevier, vol. 76(1), pages 61-85, March.
  17. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 99(397), pages 569-96, September.
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Cited by:
  1. Werner Hölzl & Jürgen Janger, 2012. "Innovation Barriers across Firms and Countries," WIFO Working Papers, WIFO 426, WIFO.
  2. Hölzl, Werner & Janger, Jürgen, 2014. "Distance to the frontier and the perception of innovation barriers across European countries," Research Policy, Elsevier, Elsevier, vol. 43(4), pages 707-725.

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