Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Link between Innovation and Productivity in Estonia’s Service Sectors

Contents:

Author Info

  • Priit Vahter

    ()

  • Jaan Masso

    ()

Abstract

The emerging literature on the characteristics of innovation processes in the service sector has paid relatively little attention to the links between innovation and productivity. In this paper we investigate how the innovation-productivity relationship differs across various subbranches of the service sector. For the analysis we use the CDM structural model consisting of equations for innovation expenditures, innovation output, productivity and exports. We use data from the community innovation surveys for Estonia. We show that innovation is associated with increased productivity in the service sector. The results indicate surprisingly that the effect of innovation on productivity is stronger in the less knowledge-intensive service sectors, despite the lower frequency of innovative activities and the results of earlier literature. Non-technological innovation only plays a positive role in some specifications, despite its expected importance especially among the service firms. An additional positive channel of the effects of innovation on productivity may function through increased exports.

Download Info

If 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.
File URL: http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp1012.pdf
Download Restriction: no

Bibliographic Info

Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number wp1012.

as in new window
Length: pages
Date of creation: 01 Mar 2011
Date of revision:
Handle: RePEc:wdi:papers:2011-1012

Contact details of provider:
Postal: 724 E. University Ave, Wyly Hall 1st Flr, Ann Arbor MI 48109
Phone: 734 763-5020
Fax: 734 763 5850
Email:
Web page: http://www.wdi.umich.edu
More information through EDIRC

Related research

Keywords: innovation; services; productivity;

Other versions of this item:

Find related papers by JEL classification:

References

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.:
as in new window
  1. Jonathan Haskel & Raffaella Sadun, 2012. "Regulation and UK Retailing Productivity: Evidence from Microdata," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 79(315), pages 425-448, 07.
  2. Antonio Musolesi & Jean-Pierre Huiban, 2010. "Innovation and productivity in knowledge intensive business services," Journal of Productivity Analysis, Springer, Springer, vol. 34(1), pages 63-81, August.
  3. Hans Loof & Almas Heshmati, 2006. "On the relationship between innovation and performance: A sensitivity analysis," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 317-344.
  4. repec:fth:inseep:9833 is not listed on IDEAS
  5. Bruno Crépon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation and Productivity : An Econometric Analysis at the Firm Level," Working Papers, Centre de Recherche en Economie et Statistique 98-33, Centre de Recherche en Economie et Statistique.
  6. Bart van Ark & Mary O'Mahoney & Marcel P. Timmer, 2008. "The Productivity Gap between Europe and the United States: Trends and Causes," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 22(1), pages 25-44, Winter.
  7. 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.
  8. Polder, Michael & Leeuwen, George van & Mohnen, Pierre & Raymond, Wladimir, 2009. "Productivity effects of innovation modes," MPRA Paper 18893, University Library of Munich, Germany.
  9. Faïz Gallouj & Maria Savona, 2009. "Innovation in services: a review of the debate and a research agenda," Journal of Evolutionary Economics, Springer, Springer, vol. 19(2), pages 149-172, April.
  10. Martin Neil Baily & Eric Zitzewitz, 2001. "Service Sector Productivity Comparisons: Lessons for Measurement," NBER Chapters, National Bureau of Economic Research, Inc, in: New Developments in Productivity Analysis, pages 419-464 National Bureau of Economic Research, Inc.
  11. Luísa Ferreira Lopes & Manuel Mira Godinho, 2005. "Services Innovation and Economic Performance An analysis at the firm level," DRUID Working Papers, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies 05-08, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  12. 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, Faculty of Economics and Business Administration, University of Tartu (Estonia) 61, Faculty of Economics and Business Administration, University of Tartu (Estonia).
  13. Alan Gerber & Daniel Kessler & Marc Meredith, 2008. "The Persuasive Effects of Direct Mail: A Regression Discontinuity Approach," NBER Working Papers 14206, National Bureau of Economic Research, Inc.
  14. Rinaldo Evangelista & Maria Savona, 2002. "The Impact of Innovation on Employment in Services: Evidence from Italy," International Review of Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 16(3), pages 309-318.
  15. MOTHE Caroline & NGUYEN Thi Thuc Uyen, 2010. "The impact of non-technological innovation on technical innovation: do services differ from manufacturing? An empirical analysis of Luxembourg firms," CEPS/INSTEAD Working Paper Series 2010-01, CEPS/INSTEAD.
  16. J. A. Camacho & M. Rodriguez, 2008. "Patterns Of Innovation In The Service Sector: Some Insights From The Spanish Innovation Survey," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(5), pages 459-471.
  17. Lööf, Hans & Heshmati, Almas & Asplund, Rita & Nåås, Svein-Olav, 2001. "Innovation and Performance in Manufacturing Industries: A Comparison of the Nordic Countries," Working Paper Series in Economics and Finance 0457, Stockholm School of Economics.
  18. Dahlander, Linus & Gann, David M., 2010. "How open is innovation?," Research Policy, Elsevier, Elsevier, vol. 39(6), pages 699-709, July.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wdi:papers:2011-1012. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laurie Gendron).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.