Innovation height, spillovers and TFP growth at the firm level: Evidence from French manufacturing
AbstractWe examine the contribution of incremental and radical innovations to total factor productivity (TFP) growth at the firm level. The first part of our analysis is dedicated to the determinants of innovation and reveals two different innovation regimes. On the one hand, radical innovations rely strongly on firm-level spillovers, including property rights, and formal internal research while, on the other hand, incremental innovations rely mostly on the adoption of equipment goods accompanied by informal research. We find that radical innovations are the only significant contributors to TFP growth so that innovation height matters. We also find evidence that TFP growth is better represented by an upward shift of the production function than by a continuous innovation measure. Overall, the growth gains that we find are comparable to the ones of the previous studies.
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Bibliographic InfoPaper provided by EconWPA in its series Development and Comp Systems with number 0411017.
Length: 44 pages
Date of creation: 16 Nov 2004
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growth; innovation; total factor productivity; Solow residual; spillovers;
Other versions of this item:
- Emmanuel Duguet, 2006. "Innovation height, spillovers and tfp growth at the firm level: Evidence from French manufacturing," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 415-442.
- C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- 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
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-11-22 (All new papers)
- NEP-INO-2004-11-22 (Innovation)
- NEP-MIC-2004-11-22 (Microeconomics)
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