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R&D vs. Other Factor Inputs in a High-Tech Industry


  • Pii Elina Berghäll


According to knowledge-based growth theories, catch-up with the global technology frontier calls for a shift from physical investment to innovation. This prevailing premise in Finland is tested with an unbalanced panel of firms in Finnish information and communications technology (ICT) manufacturing, over a period of rapid growth, 1990--2003. Stochastic frontier model estimation results are overwhelmed by scale elasticity associated productivity growth. Contrary to beliefs, R&D productivity was relatively low, regardless if measured by efficiency impacts of R&D intensity, technical change or R&D elasticity of output. Results are consistent with industry outcomes and reveal internal causes to the subsequent downfall of ICT manufacturing in Finland.

Suggested Citation

  • Pii Elina Berghäll, 2012. "R&D vs. Other Factor Inputs in a High-Tech Industry," Industry and Innovation, Taylor & Francis Journals, vol. 19(2), pages 127-153, February.
  • Handle: RePEc:taf:indinn:v:19:y:2012:i:2:p:127-153
    DOI: 10.1080/13662716.2012.650882

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    References listed on IDEAS

    1. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, January.
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    Cited by:

    1. Bonanno, Graziella, 2014. "ICT and R&D as inputs or efficiency determinants? Analysing the manufacturing Italian firms over the 2007-2009," MPRA Paper 57640, University Library of Munich, Germany.
    2. Berghäll, Pii Elina, 2013. "Miksi eurosta kannattaa erota
      [Why Finland should abandon the euro]
      ," MPRA Paper 68830, University Library of Munich, Germany, revised 15 Jan 2016.

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