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R&D, International Trade and Creative Destruction—Empirical Findings from Finnish Manufacturing Industries

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  • Mika Maliranta

Abstract

The determinants of productivity-enhancing micro-level restructuring are examined empirically with a panel of the twelve Finnish manufacturing industries. It is hypothesized that R&D leads to productivity diversity among plants, which in turn leads to the gradual reshuffling of input shares in the presence of dynamic competitive pressure. The effect of the “creative destruction” on industry productivity growth is measured with the between-component of productivity decomposition. Econometric results indicate with reasonable robustness that R&D generates creative destruction with a lag of several years. Some evidence is found that imports stimulate productivity-enhancing restructuring, especially when domestic R&D is low. Copyright Springer Science + Business Media, Inc. 2005

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  • Mika Maliranta, 2005. "R&D, International Trade and Creative Destruction—Empirical Findings from Finnish Manufacturing Industries," Journal of Industry, Competition and Trade, Springer, vol. 5(1), pages 27-58, January.
    • Handle: RePEc:kap:jincot:v:5:y:2005:i:1:p:27-58
    DOI: 10.1007/s10842-005-0989-0
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    Cited by:

    1. Böckerman, Petri & Maliranta, Mika, 2006. "The Micro-level Dynamics of Regional Productivity Growth: The Source of Divergence in Finland Revised," Discussion Papers 1038, The Research Institute of the Finnish Economy.
    2. Daniela Maggioni, 2013. "Productivity Dispersion and its Determinants: The Role of Import Penetration," Journal of Industry, Competition and Trade, Springer, vol. 13(4), pages 537-561, December.
    3. Tomi Kyyrä & Mika Maliranta, 2008. "The micro-level dynamics of declining labour share: lessons from the Finnish great leap ," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 17(6), pages 1147-1172, December.
    4. Maliranta, Mika, 2005. "Foreign-owned Firms and Productivity-enhancing Restructuring in Finnish Manufacturing Industries," Discussion Papers 965, The Research Institute of the Finnish Economy.
    5. Hyytinen, Ari & Maliranta, Mika, 2013. "Firm lifecycles and evolution of industry productivity," Research Policy, Elsevier, vol. 42(5), pages 1080-1098.
    6. Sauramo, Pekka & Maliranta, Mika, 2011. "Structural change in Finnish manufacturing: The theory of the aggregation of production functions and an empirical analysis with a plant-level panel," Structural Change and Economic Dynamics, Elsevier, vol. 22(2), pages 116-134, June.
    7. Fabio Bertoni & Massimo Colombo & Luca Grilli, 2013. "Venture capital investor type and the growth mode of new technology-based firms," Small Business Economics, Springer, vol. 40(3), pages 527-552, April.
    8. Ali-Yrkkö, Jyrki & Maliranta, Mika, 2006. "Impact of R&D on Productivity - Firm-level Evidence from Finland," Discussion Papers 1031, The Research Institute of the Finnish Economy.

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