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R&D, Innovation and the Impact on Productivity in Flanders

Listed author(s):
  • D. Czarnitzki
  • N. O'Byrnes

This paper presents an empirical study on productivity growth using data from the Flemish part of the Community Innovation Survey 2005. In particuiar, we investigate growth differences between R&D-performing firms and non-R&D performers. As internal R&D is only one source of innovativeness, we also consider growth contributions of product and process innovations. Using a sample of more than 1,200 firms in Flemish manufacturing and selected services, we find that R&D-performers show an almost 6%-points higher growtb rate between 2002 and 2004 than non-R&D performers, on average. However, once product and process innovation are introduced in the model, the contribution of R&D drops to about 4%-points. Interestingly, we find that process innovations are an important driver of productivity growth while product innovations have no significant impact once it is controlled for R&D activity.

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Article provided by KU Leuven, Faculty of Economics and Business, Review of Business and Economic Literature in its journal Review of Business and Economic Literature.

Volume (Year): LII (2007)
Issue (Month): 2 ()
Pages: 199-216

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Handle: RePEc:ete:revbec:20070201
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