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Innovation height, spillovers and tfp growth at the firm level: Evidence from French manufacturing

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  • Emmanuel Duguet

Abstract

The author examines the contribution of incremental and radical innovations to total factor productivity (TFP) growth at the firm level. The first part of our analysis is dedicated to the determinants of innovation and reveals two different innovation regimes. On the one hand, radical innovations rely strongly on firm-level spillovers, including property rights, and formal internal research, whereas on the other hand, incremental innovations rely mostly on the adoption of equipment goods accompanied by informal research. It is found that radical innovations are the only significant contributors to TFP growth, so that innovation height matters. Evidences show that TFP growth is better represented by an upward shift of the production function than by a continuous innovation measure. Overall, the growth gains found are comparable to the ones of the previous studies.

Suggested Citation

  • Emmanuel Duguet, 2006. "Innovation height, spillovers and tfp growth at the firm level: Evidence from French manufacturing," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 415-442.
    • Handle: RePEc:taf:ecinnt:v:15:y:2006:i:4-5:p:415-442
    DOI: 10.1080/10438590500512968
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    More about this item

    Keywords

    Growth; Innovation; Total factor productivity; Solow residual; Spillovers;
    All these keywords.

    JEL classification:

    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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