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Productivity growth persistence: firm strategies, size and system properties

In: The Evolutionary Complexity of Endogenous Innovation

Author

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  • Cristiano Antonelli
  • Francesco Crespi
  • Giuseppe Scellato

Abstract

This chapter analyses the dynamics of path dependence, exploring the determinants of the persistence of firm productivity, here measured by total factor productivity (TFP). It highlights the crucial role of the interplay between the internal characteristics of companies, including their size and management strategies, and system properties such as access conditions to local pools of knowledge and the dynamics of economic activity in assessing the dynamics. Analysis of transition probability matrices (TPMs) and econometric analysis provide substantial evidence of the relevance of the mix of individual and systemic factors in shaping persistence as a path-dependent process in which events that take place along the process affect its direction and the pace of productivity dynamics.

Suggested Citation

  • Cristiano Antonelli & Francesco Crespi & Giuseppe Scellato, 2018. "Productivity growth persistence: firm strategies, size and system properties," Chapters, in: The Evolutionary Complexity of Endogenous Innovation, chapter 8, pages 176-202, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:18031_8
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    2. Antonelli, Cristiano & David, Paul, 2015. "The Useful Application of Knowledge: An Introduction," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201510, University of Turin.
    3. Cuevas-Vargas, Héctor & Aguirre, Joao & Parga-Montoya, Neftalí, 2022. "Impact of ICT adoption on absorptive capacity and open innovation for greater firm performance. The mediating role of ACAP," Journal of Business Research, Elsevier, vol. 140(C), pages 11-24.
    4. Marc Cowling & George Tanewski, 2019. "On the productive efficiency of Australian businesses: firm size and age class effects," Small Business Economics, Springer, vol. 53(3), pages 739-752, October.
    5. Ali, Jabir, . "Performance of small and medium-sized food and agribusiness enterprises: evidence from Indian firms," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(4).
    6. Beldina Owalla & Cristian Gherhes & Tim Vorley & Chay Brooks, 2022. "Mapping SME productivity research: a systematic review of empirical evidence and future research agenda," Small Business Economics, Springer, vol. 58(3), pages 1285-1307, March.
    7. Song, Yi & Zhang, Yangxueying & Zhang, Yijun, 2022. "Economic and environmental influences of resource tax: Firm-level evidence from China," Resources Policy, Elsevier, vol. 77(C).
    8. Cristiano Antonelli, 2019. "Knowledge as an economic good: Exhaustibility versus appropriability?," The Journal of Technology Transfer, Springer, vol. 44(3), pages 647-658, June.
    9. Areti Gkypali & Kostas Kounetas & Kostas Tsekouras, 2019. "European countries’ competitiveness and productive performance evolution: unraveling the complexity in a heterogeneity context," Journal of Evolutionary Economics, Springer, vol. 29(2), pages 665-695, April.
    10. Arturo GUTIERREZ FERNANDEZ & Macarena PEREZ-SUAREZ, 2017. "The Export Competitiveness Of Social Enterprises As Compared To With Export Smes," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 26(1), pages 55-72.
    11. Denila Jinny Arulraj & Thillai Rajan Annamalai, 2020. "Firms’ Financing Choices and Firm Productivity: Evidence from an Emerging Economy," International Journal of Global Business and Competitiveness, Springer, vol. 15(1), pages 35-48, June.
    12. Desiderio Romero-Jordán & Ismael Sanz-Labrador & José Félix Sanz-Sanz, 2020. "Is the corporation tax a barrier to productivity growth?," Small Business Economics, Springer, vol. 55(1), pages 23-38, June.
    13. Zhang, Yijun & Li, Xiaoping & Song, Yi & Jiang, Feitao, 2021. "Can green industrial policy improve total factor productivity? Firm-level evidence from China," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 51-62.
    14. Cristiano Antonelli, 2017. "Endogenous innovation: the creative response," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(8), pages 689-718, November.
    15. Maximiliano Machado, 2021. "Heterogeneous Innovation Persistence: Evidence From Uruguayan Firms," Documentos de Trabajo (working papers) 21-04, Instituto de Economía - IECON.
    16. Cristiano Antonelli & Francesco Crespi & Christian A. Mongeau Ospina & Giuseppe Scellato, 2017. "Knowledge composition, Jacobs externalities and innovation performance in European regions," Regional Studies, Taylor & Francis Journals, vol. 51(11), pages 1708-1720, November.
    17. Denila Jinny Arulraj & Thillai Rajan Annamalai, 0. "Firms’ Financing Choices and Firm Productivity: Evidence from an Emerging Economy," International Journal of Global Business and Competitiveness, Springer, vol. 0, pages 1-14.

    More about this item

    Keywords

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    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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