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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. Luo, Yadong, 2006. "Opportunism in Inter-firm Exchanges in Emerging Markets," Management and Organization Review, Cambridge University Press, vol. 2(01), pages 121-147, March.
    2. Bönte, Werner, 2008. "Inter-firm trust in buyer-supplier relations: Are knowledge spillovers and geographical proximity relevant?," Journal of Economic Behavior & Organization, Elsevier, vol. 67(3-4), pages 855-870, September.
    3. Charles Dhanaraj & Marjorie A Lyles & H Kevin Steensma & Laszlo Tihanyi, 2004. "Managing tacit and explicit knowledge transfer in IJVs: the role of relational embeddedness and the impact on performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 428-442, September.
    4. Yadong Luo, 2006. "Opportunism in Inter-firm Exchanges in Emerging Markets," Management and Organization Review, International Association of Chinese Management Research, vol. 2(1), pages 121-147, March.
    5. Giacomo Becattini & Marco Bellandi & Gabi Del Ottati & Fabio Sforzi, 2003. "From Industrial Districts to Local Development," Books, Edward Elgar Publishing, number 2884.
    6. Parkhe, Arvind, 1998. "Understanding trust in international alliances," Journal of World Business, Elsevier, vol. 33(3), pages 219-240, October.
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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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