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


  • 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.

Suggested Citation

  • D. Czarnitzki & N. O'Byrnes, 2007. "R&D, Innovation and the Impact on Productivity in Flanders," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business, Review of Business and Economic Literature, vol. 0(2), pages 199-216.
  • Handle: RePEc:ete:revbec:20070201

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    Cited by:

    1. Sanchez, Juana, 2014. "Non-technological and Mixed Modes of Innovation in the United States. Evidence from the Business Research and Development and Innovation Survey, 2008-2011," MPRA Paper 58719, University Library of Munich, Germany.

    More about this item


    Productivity Growth; R&D; Innovation; Flanders; Community Innovation Survey (CIS);

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General


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