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Innovation and productivity in European industries

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Author Info
Mario Pianta () (Corresponding author, Università di Urbino)
Andrea Vaona () (Dipartimento di Scienze economiche (Università di Verona))

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Abstract

The 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.

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File URL: http://dse.univr.it/RePEc/ver/Wpaper/WP34.pdf
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Publisher Info
Paper provided by Università di Verona, Dipartimento di Scienze economiche in its series Working Papers with number 34.

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Length: 38
Date of creation: Jun 2006
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Handle: RePEc:ver:wpaper:34

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Related research
Keywords: Innovation; productivity; export performance; industries;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
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.:
  1. Van Dijk, Bob, et al, 1997. " Some New Evidence on the Determinants of Large- and Small-Firm Innovation," Small Business Economics, Springer, vol. 9(4), pages 335-43, August. [Downloadable!] (restricted)
  2. Mario Pianta & Andrea Vaona, 2006. "Firm size and Innovation in European Manufacturing," Kiel Working Papers 1284, Kiel Institute for the World Economy. [Downloadable!]
    Other versions:
  3. 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(1998-2), pages 297-346. [Downloadable!]
  4. 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 98.15, Université Panthéon-Sorbonne (Paris 1).
  5. 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. [Downloadable!] (restricted)
  6. Kenneth Carlaw & Stephen Kosempel, 2004. "The sources of total factor productivity growth: Evidence from Canadian data," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 13(4), pages 299-309, June. [Downloadable!] (restricted)
  7. Den Hertog, R.G.J. & Thurik, A.R., 1992. "Determinants of Large-and Small-Firm Innovation: Some New Evidence," Papers 9238-a, Erasmus University of Rotterdam - Econometric Institute.
  8. Brouwer, Maria, 1998. " Firm Size and Efficiency in Innovation: Comment," Small Business Economics, Springer, vol. 11(4), pages 391-93, December. [Downloadable!] (restricted)
  9. 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, Economics Department. [Downloadable!]
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  10. Jeroen Hinloopen, 2003. "Innovation Performance Across Europe," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 12(2), pages 145-161, January. [Downloadable!] (restricted)
  11. Wakelin, Katharine, 2001. "Productivity growth and R&D expenditure in UK manufacturing firms," Research Policy, Elsevier, vol. 30(7), pages 1079-1090, August. [Downloadable!] (restricted)
  12. Nerlove, Marc, 1971. "A Note on Error Components Models," Econometrica, Econometric Society, vol. 39(2), pages 383-96, March. [Downloadable!] (restricted)
  13. 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, Directorate for Science, Technology and Industry. [Downloadable!]
  14. Davis, Peter, 2002. "Estimating multi-way error components models with unbalanced data structures," Journal of Econometrics, Elsevier, vol. 106(1), pages 67-95, January. [Downloadable!] (restricted)
  15. Baltagi, Badi H., 1985. "Pooling cross-sections with unequal time-series lengths," Economics Letters, Elsevier, vol. 18(2-3), pages 133-136. [Downloadable!] (restricted)
  16. Moulton, Brent R & Randolph, William C, 1989. "Alternative Tests of the Error Components Model," Econometrica, Econometric Society, vol. 57(3), pages 685-93, May. [Downloadable!] (restricted)
  17. Frank R. Lichtenberg & Donald Siegel, 1991. "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. [Downloadable!] (restricted)
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  18. 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.
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Cited by:
(explanations, 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.)

  1. 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). [Downloadable!]
    Other versions:
  2. 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. [Downloadable!] (restricted)
    Other versions:
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