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Innovation and productivity among heterogeneous firms

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  • Morris, Diego M.

Abstract

This paper examines the links between firm innovation and productivity using the largest cross-country panel dataset assembled for this purpose to date. We use harmonized and comparable data on a total of 40,577 small, medium and large firms surveyed in the World Bank Enterprise Surveys (WBES) and provide some support for the reported patterns previously found in the innovation literature. Our results indicate that estimates from studies using cross-section data may be upward biased but nevertheless, innovative firms are significantly and economically more productive in both the manufacturing and services sectors.

Suggested Citation

  • Morris, Diego M., 2018. "Innovation and productivity among heterogeneous firms," Research Policy, Elsevier, vol. 47(10), pages 1918-1932.
    • Handle: RePEc:eee:respol:v:47:y:2018:i:10:p:1918-1932
    DOI: 10.1016/j.respol.2018.07.003
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    Keywords

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    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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