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A comparative perspective on innovation and productivity in manufacturing and services

In: Entrepreneurships, the New Economy and Public Policy

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  • Hans Lööf

    (Royal Institute of Technology, Centre of Excellence for Science and Innovation Studies)

Abstract

This paper serves as another complementary link in a chain of a rather limited number of investigations in the R&D-innovation-productivity relationship within service industries. Innovation has been found to be a major contributor to productivity growth in manufacturing. In this paper, the importance of innovation is explored by comparing manufacturing and service firms in a sample of knowledge intensive industries. In particular, we intend to find evidence on the following two issues. First, is there any evidence that the reported weak rate of productivity growth in knowledge intensive services can be explained by a low propensity to be innovative? Second, is it possible that knowledge-intensive service firms are less efficient in deriving benefits from innovation than knowledge-intensive manufacturing firms? Empirical results based on innovation survey data indicate a surprising similarity in innovation performance between the two categories of firms.

Suggested Citation

  • Hans Lööf, 2005. "A comparative perspective on innovation and productivity in manufacturing and services," Springer Books, in: Uwe Cantner & Elias Dinopoulos & Robert F. Lanzillotti (ed.), Entrepreneurships, the New Economy and Public Policy, pages 181-202, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-26994-6_11
    DOI: 10.1007/3-540-26994-0_11
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    References listed on IDEAS

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    1. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
    2. Baumol, William J, 1972. "Macroeconomics of Unbalanced Growth: Reply," American Economic Review, American Economic Association, vol. 62(1), pages 150-150, March.
    3. Edwin R. Dean & Kent Kunze, 1992. "Productivity Measurement in Service Industries," NBER Chapters, in: Output Measurement in the Service Sectors, pages 73-107, National Bureau of Economic Research, Inc.
    4. Paul A. Armknecht & Daniel H. Ginsburg, 1992. "Improvements in Measuring Price Changes in Consumer Services: Past, Present, and Future," NBER Chapters, in: Output Measurement in the Service Sectors, pages 109-157, National Bureau of Economic Research, Inc.
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    7. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
    8. Falk, Martin & Koebel, Bertrand M., 2000. "Outsourcing of services, imported materials and the demand for heterogeneous labour : an application of a generalised box-cox function," ZEW Discussion Papers 00-51, ZEW - Leibniz Centre for European Economic Research.
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    Cited by:

    1. Agustí Segarra-Blasco & José García-Quevedo & Mercedes Teruel-Carrizosa, 2007. "Barriers to Innovation and Public Policy in Catalonia," Working Papers XREAP2007-10, Xarxa de Referència en Economia Aplicada (XREAP), revised Nov 2007.
    2. Esther Gordo & Javier Jareño & Alberto Urtasun, 2006. "Radiografía del sector servicios en España," Occasional Papers 0607, Banco de España.
    3. Segarra-Blasco, Agusti­ & Arauzo-Carod, Josep-Maria, 2008. "Sources of innovation and industry-university interaction: Evidence from Spanish firms," Research Policy, Elsevier, vol. 37(8), pages 1283-1295, September.

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    More about this item

    Keywords

    Productivity; Innovation; Manufacturing; Services; Applied Econometrics;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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