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Linkage between productivity and innovation in different service sectors

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  • Rõigas, Kärt
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    Abstract

    The purpose of the paper is to find out whether linkages between productivity and innovation are different among Estonian service sector sub-sectors. In this paper productivity is measured as value added per employee. An original approach toward measurement of productivity is used, decomposing it into three components: labour costs, depreciation and gross profit per employee. Four types of innovation are studied: product, process, organizational and marketing innovation. The empirical analysis is based on productivity data from the Estonian Business Register and innovation data from the Estonian Community Innovation Survey 5, covering the period between 2004 and 2006. Results based on Estonian service sectors reveal that in different sub-sectors different types of innovation are linked to productivity. Still, all linkages between innovation and productivity or its components are positive. There is one exception: among assisting services marketing innovation and gross profit are negatively associated with each other. --

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    Bibliographic Info

    Paper provided by OrdnungsPolitisches Portal (OPO) in its series Discourses in Social Market Economy with number 2011-02.

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    Date of creation: 2011
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    Handle: RePEc:zbw:opodis:201102

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    Web page: http://ordnungspolitisches-portal.de/

    Related research

    Keywords: service sector; productivity; productivity components; four innovation types;

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    1. Rachel Griffith & Stephen Redding & Helen Simpson, 2004. "Foreign Ownership and Productivity: New Evidence from the Service Sector and the R&D Lab," LSE Research Online Documents on Economics 3699, London School of Economics and Political Science, LSE Library.
    2. Bruno Crépon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation and Productivity : An Econometric Analysis at the Firm Level," Working Papers 98-33, Centre de Recherche en Economie et Statistique.
    3. Priit Vahter & Jaan Masso, 2006. "Home versus Host Country Effects of FDI: Searching for New Evidence of Productivity Spillovers," William Davidson Institute Working Papers Series 820, William Davidson Institute at the University of Michigan.
    4. Kolev, Stefan, 2010. "Der bulgarische Weg seit 1989: Wachstum ohne Ordnung?," Discourses in Social Market Economy 2010-12, OrdnungsPolitisches Portal (OPO).
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