IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Technological innovation and productivity in late-transition Estonia: econometric evidence from innovation surveys

  • Jaan Masso
  • Priit Vahter

There is growing interest in modelling the relationship between innovation and productivity in developing and transition economies due to their attempts to establish knowledge-based economies and to increase business R&D. Our paper investigates whether there is a significant relationship between technological innovation and productivity in the manufacturing sector of Estonia. We use firm-level data for the analysis from two waves of Community Innovation Surveys (CIS3 and CIS4) from 1998-2000 and 2002-2004, which is then combined with lead financial data about firms from the Estonian Business Register in order to study the effect of innovation on future performance. We apply a structural model that involves a system of equations on innovation expenditure, innovation outcome and productivity. Our results show that during 1998-2000 only product innovation increased productivity, while in 2002-2004 only process innovation had a positive effect on productivity. This can probably be explained by the different macroeconomic conditions in the two periods. Il existe un interet croissant a la modelisation des relations entre innovation et productivite dans les pays en developpement et en transition qui cherchent a promouvoir l'economie de la connaissance et la R&D dans les entreprises. Notre article s'interroge sur l'importance de la relation entre innovation technologique et productivite dans le secteur manufacturier en Estonie Nous utilisons des donnees d'entreprises pour analyser deux vagues d'enquetes communautaires d'innovation (C3S3 et CIS4), celles de 1998-2000 et de 2002-2004, qui sont ensuite combinees avec des donnees financieres avancees du registre des entreprises estoniennes, dans le but d'etudier les effets de l'innovation sur les performances futures. Nous appliquons un modele structurel qui comporte un systeme d'equations sur les depenses d'innovation, le revenu de l'innovation et la productivite. Nos resultats montrent que durant la periode 1998-2000, seule l'innovation concernant les produits a un effet positif sur la productivite alors qu'en 2002-2004, seul le processus d'innovation a un effet positif sur la productivite. Ceci s'explique probablement par des conditions macroeconomiques differentes entre les deux periodes.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/09578810802060751&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Taylor and Francis Journals in its journal The European Journal of Development Research.

Volume (Year): 20 (2008)
Issue (Month): 2 ()
Pages: 240-261

as
in new window

Handle: RePEc:taf:eurjdr:v:20:y:2008:i:2:p:240-261
Contact details of provider: Web page: http://www.tandfonline.com/FEDR20

Order Information: Web: http://www.tandfonline.com/pricing/journal/FEDR20

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Nicholas Bloom & Raffaella Sadun & John Van Reenen, 2012. "Americans Do IT Better: US Multinationals and the Productivity Miracle," American Economic Review, American Economic Association, vol. 102(1), pages 167-201, February.
  2. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," Review of Economic Studies, Wiley Blackwell, vol. 70(2), pages 317-341, 04.
  3. Paul A. David & Bronwyn H. Hall & Andrew A. Toole, 2005. "Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence," Development and Comp Systems 0502011, EconWPA.
  4. Lööf, Hans & Heshmati, Almas & Asplund, Rita & Nåås, Svein-Olav, 2001. "Innovation and Performance in Manufacturing Industries: A Comparison of the Nordic Countries," SSE/EFI Working Paper Series in Economics and Finance 0457, Stockholm School of Economics.
  5. Bruno Crépon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation and Productivity : An Econometric Analysis at the Firm Level," Working Papers 98-33, Centre de Recherche en Economie et Statistique.
  6. Klette, Tor Jakob & Kortum, Samuel S, 2002. "Innovating Firms and Aggregate Innovation," CEPR Discussion Papers 3248, C.E.P.R. Discussion Papers.
  7. repec:fth:inseep:9833 is not listed on IDEAS
  8. Mario Pianta & Andrea Vaona, 2006. "Innovation and Productivity in European Industries," Kiel Working Papers 1283, Kiel Institute for the World Economy.
  9. Janz, Norbert & Lööf, Hans & Peters, Bettina, 2004. "Firm Level Innovation and Productivity - Is there a Common Story Across Countries?," Working Paper Series in Economics and Institutions of Innovation 24, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  10. Raul Eamets & Urmas Varblane & Kaja Sostra, 2003. "External Macroeconomic Shocks and the Estonian economy: How did the Russian Financial Crisis affect Estonian Unemployment and Foreign Trade?," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 3(2), pages 5-24, July.
  11. José Miguel Benavente, 2002. "The Role of Research and Innovation in Promoting Productivity in Chile," Working Papers wp200, University of Chile, Department of Economics.
  12. Cohen, Wesley M & Klepper, Steven, 1996. "A Reprise of Size and R&D," Economic Journal, Royal Economic Society, vol. 106(437), pages 925-51, July.
  13. Priit Vahter, 2006. "Productivity in Estonian enterprises: the role of innovation and competition," Bank of Estonia Working Papers 2006-07, Bank of Estonia, revised 11 Dec 2006.
  14. Johannes Stephan, 2004. "The Productivity Gap between East and West Europe: What Role for Sectoral Structures during Integration?," Development and Comp Systems 0403004, EconWPA.
  15. Kadri Ukrainski & Urmas Varblane, 2005. "Sources Of Innovation In The Estonian Forest And Wood Cluster," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 36, Faculty of Economics and Business Administration, University of Tartu (Estonia).
  16. Chudnovsky, Daniel & Lopez, Andres & Pupato, German, 2006. "Innovation and productivity in developing countries: A study of Argentine manufacturing firms' behavior (1992-2001)," Research Policy, Elsevier, vol. 35(2), pages 266-288, March.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:taf:eurjdr:v:20:y:2008:i:2:p:240-261. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.