Innovation capabilities and firm labor productivity
AbstractThis study relies on a Cobb-Douglas production function to assess the relationship between the development of innovation capabilities by firms and their labor productivity. Intra-organizational capabilities relate to firms’ corporate culture and work organization, generation of innovative ideas and selection of projects, and innovation funding sources. Inter-organizational capabilities relate to the use of external information from vertical partners, competitors, and consultants, and to R&D partnerships with scientific institutions. In addition to the traditional effect of a growth in the ratio of physical capital per employee, both types of innovation capabilities are found to significantly increase labor productivity.
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Bibliographic InfoPaper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers CEB with number 04-030.RS.
Length: 17 p.
Date of creation: 2004
Date of revision:
Publication status: Published by: Solvay Business School, Centre Emile Bernheim
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More information through EDIRC
Innovation; organizational capabilities; performance; labor productivity.;
Find related papers by JEL classification:
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- M21 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - Business Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-02-05 (All new papers)
- NEP-EFF-2006-02-05 (Efficiency & Productivity)
- NEP-INO-2006-02-05 (Innovation)
- NEP-TID-2006-02-05 (Technology & Industrial Dynamics)
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