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Micro evidence of the effects of R&D on labour productivity for large international R&D firms

Author

Listed:
  • Michele Cincera
  • Luigi Aldieri
  • Antonio Garofalo
  • Concetto Paolo Vinci

Abstract

Purpose - The aim of this paper is to assess the effects of traditional inputs and firms' R&D capital on labour productivity growth. Design/methodology/approach - The study measures the effects of the traditional inputs on firms' productivity growth, through four procedures: OLS in first differences, within group, GMM in first differences and GMM system. Findings - Whatever the specification considered, the more efficient estimates obtained from the GMM system show a similar effect of the firm's R&D stock upon its labour productivity performance. Practical implications - The results suggest that physical capital plays a more prominent role for European firms than for US ones, while employees are more productive in the USA. Originality/value - By presenting some empirical evidence on the effects of R&D on labour productivity, at the firm level, the present study makes two main contributions to the existing literature. First, a unique firm‐level database for European and US firms is used. It is self evident that firms in these countries operate in different economic and institutional settings; as a consequence the results identify some robust common effects concerning the two areas considered (the USA versus Europe) at the micro level. Second, service and manufacturing sectors are merged.
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Suggested Citation

  • Michele Cincera & Luigi Aldieri & Antonio Garofalo & Concetto Paolo Vinci, 2008. "Micro evidence of the effects of R&D on labour productivity for large international R&D firms," ULB Institutional Repository 2013/6832, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:ulb:ulbeco:2013/6832
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    Cited by:

    1. Ugur, Mehmet & Trushin, Eshref & Solomon, Edna & Guidi, Francesco, 2016. "R&D and productivity in OECD firms and industries: A hierarchical meta-regression analysis," Research Policy, Elsevier, vol. 45(10), pages 2069-2086.
    2. Vu, Khuong & Hartley, Kris, 2022. "Sources of transport sector labor productivity performance in industrialized countries: Insights from a decomposition analysis," Transport Policy, Elsevier, vol. 129(C), pages 204-218.

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