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Engines of growth. Innovation and productivity in industry groups

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  • Bogliacino, Francesco
  • Pianta, Mario

Abstract

The diversity of technological activities that contribute to growth in labour productivity is examined in this article for manufacturing and services industries in eight major EU countries. We test the relevance of two "engines of growth", i.e., the strategies of technological competitiveness (based on innovation in products and markets) and cost competitiveness (relying on innovation in processes and machinery) and their impact on economic performance. We propose models for the determinants of changes in labour productivity and we carry out empirical tests for both the whole economy and for the four Revised Pavitt classes that group manufacturing and services industries with distinct patterns of innovation. Tests are carried out by pooling industries, countries and three time periods, using innovation survey data from CIS 2, 3 and 4, linked to economic variables. The results confirm the specificity of the two "engines of growth"; economic performances in European industries appear as the result of different innovation models, with strong specificities of the four Revised Pavitt classes.

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  • Bogliacino, Francesco & Pianta, Mario, 2011. "Engines of growth. Innovation and productivity in industry groups," Structural Change and Economic Dynamics, Elsevier, vol. 22(1), pages 41-53, February.
    • Handle: RePEc:eee:streco:v:22:y:2011:i:1:p:41-53
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    4. Francesco Bogliacino & Mario Pianta, 2016. "The Pavitt Taxonomy, revisited: patterns of innovation in manufacturing and services," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 33(2), pages 153-180, August.
    5. Mario Pianta & Jelena Reljic, 2022. "The good jobs-high innovation virtuous circle," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(3), pages 783-811, October.
    6. Fassio, Claudio, 2015. "Export-Led Innovation Among European Firms. Demand and Technological Learning Effects," LEAP Working Papers 2015/2, Luiss Institute for European Analysis and Policy.
    7. Lejla TERZIĆ, 2019. "Innovation as imperative for increasing productivity and economic growth: The case of the selected EU member countries and non-EU member countries," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(620), A), pages 115-122, Autumn.
    8. Waheed, Abdul, 2011. "Innovation and firm-level productivity: econometric evidence from Bangladesh and Pakistan," MERIT Working Papers 2011-061, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    9. Dejene Mamo Bekana, 2021. "Innovation and Economic Growth in Sub-Saharan Africa: Why Institutions Matter? An Empirical Study Aross 37 Countries," Arthaniti: Journal of Economic Theory and Practice, , vol. 20(2), pages 161-200, December.
    10. Di Tommaso, Marco R. & Tassinari, Mattia & Barbieri, Elisa & Marozzi, Marco, 2020. "Selective industrial policy and ‘sustainable’ structural change. Discussing the political economy of sectoral priorities in the US," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 309-323.
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    14. Raquel Ortega‐Argilés & Mariacristina Piva & Marco Vivarelli, 2014. "The transatlantic productivity gap: Is R&D the main culprit?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 47(4), pages 1342-1371, November.
    15. Bogliacino, Francesco & Lucchese, Matteo & Pianta, Mario, 2013. "Job creation in business services: Innovation, demand, and polarisation," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 95-109.
    16. Ortega-Argilés, Raquel & Piva, Mariacristina & Vivarelli, Marco, 2011. "Productivity Gains from R&D Investment: Are High-Tech Sectors Still Ahead?," IZA Discussion Papers 5975, Institute of Labor Economics (IZA).
    17. Millemaci, Emanuele & Ofria, Ferdinando, 2016. "Supply and demand-side determinants of productivity growth in Italian regions," Structural Change and Economic Dynamics, Elsevier, vol. 37(C), pages 138-146.
    18. Massimiliano Corradini & Valeria Costantini & Susanna Mancinelli & Massimiliano Mazzanti, 2011. "Environmental and innovation performance in a dynamic impure public good framework," Departmental Working Papers of Economics - University 'Roma Tre' 0141, Department of Economics - University Roma Tre.
    19. Abdul Waheed, 2017. "Innovation and Firm-Level Productivity: Evidence from Bangladesh," The Developing Economies, Institute of Developing Economies, vol. 55(4), pages 290-314, December.
    20. Zhu, Facang & Shi, Qiule & Balezentis, Tomas & Zhang, Chonghui, 2023. "The impact of e-commerce and R&D on firm-level production in China: Evidence from manufacturing sector," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 101-110.
    21. Matteo Lucchese, 2011. "Innovation, demand and structural change in Europe," Working Papers 1109, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2011.
    22. Mariia Shkolnykova & Lasse Steffens & Jan Wedemeier, 2024. "Systems of innovation: Path of economic transition and differences in institutions in central and Eastern Europe?," Growth and Change, Wiley Blackwell, vol. 55(1), March.
    23. Pianta, Mario & Reljic, Jelena, 2021. "Employment quality, economic performance and wages in Europe. Exploring the virtuous circle," MPRA Paper 109797, University Library of Munich, Germany.

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