Innovation and productivity in European industries
AbstractThe labour productivity impact of innovation is investigated in this paper combining neo-Schumpeterian insights on the variety of innovation, with the importance of industrial structures and firm size; two models are proposed for explaining productivity and export success in European manufacturing industries and firm size classes. The empirical estimates are based on data from the European innovation survey (CIS 2), covering Austria, France, Italy, the Netherlands and the UK, broken down by 22 sectors and for large, medium and small firms. The econometric results, obtained adopting cross-sectional estimation methodologies able to account for unobserved industrial characteristics, show that productivity in Europe relies on product and process innovation, with the support of the efficiency gains provided by a grouped business structures. Conversely, in Italy the introduction of new machinery linked to innovation appears as the key mechanism supporting domestic productivity. When export success is considered, all countries have to rely on an innovation-based model of competitiveness.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Verona, Department of Economics in its series Working Papers with number 34.
Date of creation: Jun 2006
Date of revision:
Innovation; productivity; export performance; industries;
Other versions of this item:
- Mario Pianta & Andrea Vaona, 2007. "Innovation and Productivity in European Industries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(7), pages 485-499.
- Mario Pianta & Andrea Vaona, 2006. "Innovation and Productivity in European Industries," Kiel Working Papers 1283, Kiel Institute for the World Economy.
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-07-09 (All new papers)
- NEP-EEC-2006-07-09 (European Economics)
- NEP-EFF-2006-07-09 (Efficiency & Productivity)
- NEP-INO-2006-07-09 (Innovation)
- NEP-MIC-2006-07-09 (Microeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Baltagi, Badi H., 1985. "Pooling cross-sections with unequal time-series lengths," Economics Letters, Elsevier, vol. 18(2-3), pages 133-136.
- Davis, Peter, 2002. "Estimating multi-way error components models with unbalanced data structures," Journal of Econometrics, Elsevier, vol. 106(1), pages 67-95, January.
- George van Leeuwen, 2002. "Linking Innovation to Productivity Growth Using Two Waves of the Community Innovation Survey," OECD Science, Technology and Industry Working Papers 2002/8, OECD Publishing.
- Moulton, Brent R & Randolph, William C, 1989. "Alternative Tests of the Error Components Model," Econometrica, Econometric Society, vol. 57(3), pages 685-93, May.
- Robert J. Gordon, 1998. "Foundations of the Goldilocks Economy: Supply Shocks and the Time-Varying NAIRU," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 29(2), pages 297-346.
- Dale W. Jorgenson & Kevin J. Stiroh, 2000.
"Raising the Speed Limit: US Economic Growth in the Information Age,"
OECD Economics Department Working Papers
261, OECD Publishing.
- Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: U.S. Economic Growth in the Information Age," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 31(1), pages 125-236.
- Kenneth Carlaw & Stephen Kosempel, 2004. "The sources of total factor productivity growth: Evidence from Canadian data," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(4), pages 299-309.
- Wakelin, Katharine, 2001. "Productivity growth and R&D expenditure in UK manufacturing firms," Research Policy, Elsevier, vol. 30(7), pages 1079-1090, August.
- Wansbeek, Tom & Kapteyn, Arie, 1989.
"Estimation of the error-components model with incomplete panels,"
Journal of Econometrics,
Elsevier, vol. 41(3), pages 341-361, July.
- Wansbeek, T.J. & Kapteyn, A.J., 1989. "Estimation of the error-components model with incomplete panels," Open Access publications from Tilburg University urn:nbn:nl:ui:12-364362, Tilburg University.
- Andrea Vaona & Mario Pianta, 2008.
"Firm Size and Innovation in European Manufacturing,"
Small Business Economics,
Springer, vol. 30(3), pages 283-299, March.
- Mario Pianta & Andrea Vaona, 2006. "Firm size and Innovation in European Manufacturing," Kiel Working Papers 1284, Kiel Institute for the World Economy.
- Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie MathÃÂ©matique et Applications 98.15, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
- Marc Nerlove, 1968.
"Further Evidence on the Estimation of Dynamic Economic Relations from a Time Series of Cross-Sections,"
Cowles Foundation Discussion Papers
257, Cowles Foundation for Research in Economics, Yale University.
- Nerlove, Marc, 1971. "Further Evidence on the Estimation of Dynamic Economic Relations from a Time Series of Cross Sections," Econometrica, Econometric Society, vol. 39(2), pages 359-82, March.
- Acs, Zoltan J & Audretsch, David B, 1988. "Innovation in Large and Small Firms: An Empirical Analysis," American Economic Review, American Economic Association, vol. 78(4), pages 678-90, September.
- Wulong Gu & Jianmin Tang, 2004. "Link between innovation and productivity in Canadian manufacturing industries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(7), pages 671-686.
- Lichtenberg, Frank R & Siegel, Donald, 1991.
"The Impact of R&D Investment on Productivity--New Evidence Using Linked R&D-LRD Data,"
Western Economic Association International, vol. 29(2), pages 203-29, April.
- Frank R. Lichtenberg & Donald Siegel, 1989. "The Impact of R&D Investment On Productivity - New Evidence Using Linked R&D-LRD Data," NBER Working Papers 2901, National Bureau of Economic Research, Inc.
- Francesco Bogliacino & Mario Pianta, 2011. "Innovation and demand in industry dynamics," Working Papers 1101, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2011.
- Jeroen Hinloopen, 2003. "Innovation performance across Europe," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(2), pages 145-161.
- Nerlove, Marc, 1971. "A Note on Error Components Models," Econometrica, Econometric Society, vol. 39(2), pages 383-96, March.
- Bruno Chiarini & Paolo Piselli, 2012. "Equilibrium earning premium and pension schemes: The long-run macroeconomic effects of the union," Discussion Papers 2_2012, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
- Castellacci, Fulvio, 2008. "Innovation and the competitiveness of industries: comparing the mainstream and the evolutionary approaches," MPRA Paper 27523, University Library of Munich, Germany.
- Jaan Masso & Priit Vahter, 2008.
"Technological Innovation And Productivity In Late-Transition Estonia: Econometric Evidence From Innovation Surveys,"
University of Tartu - Faculty of Economics and Business Administration Working Paper Series
61, Faculty of Economics and Business Administration, University of Tartu (Estonia).
- Jaan Masso & Priit Vahter, 2008. "Technological innovation and productivity in late-transition Estonia: econometric evidence from innovation surveys," European Journal of Development Research, Taylor and Francis Journals, vol. 20(2), pages 240-261.
- Bronwyn H. Hall & Francesca Lotti & Jacques Mairesse, 2008.
"Innovation and Productivity in SMEs: Empirical Evidence for Italy,"
NBER Working Papers
14594, National Bureau of Economic Research, Inc.
- Bronwyn Hall & Francesca Lotti & Jacques Mairesse, 2009. "Innovation and productivity in SMEs: empirical evidence for Italy," Small Business Economics, Springer, vol. 33(1), pages 13-33, June.
- Bronwyn H. Hall & Francesca Lotti & Jacques Mairesse, 2009. "Innovation and productivity in SMEs. Empirical evidence for Italy," Temi di discussione (Economic working papers) 718, Bank of Italy, Economic Research and International Relations Area.
- Anna Sabadash, 2013. "ICT-induced Technological Progress and Employment: A Literature Review," JRC-IPTS Working Papers on Digital Economy 2013-07, Institute of Prospective Technological Studies, Joint Research Centre.
- Matteo Bugamelli & Luigi Cannari & Francesca Lotti & Silvia Magri, 2012. "The innovation gap of Italy’s production system: roots and possible solutions," Questioni di Economia e Finanza (Occasional Papers) 121, Bank of Italy, Economic Research and International Relations Area.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael Reiter).
If references are entirely missing, you can add them using this form.