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Innovation and Productivity in the Food vs. the High-Tech Manufacturing Sector

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  • Frick, F.
  • Jantke, C.
  • Sauer, J.

Abstract

The food sector is considered a mature and a research and development (R&D) extensive industry. Nevertheless, also food companies face numerous challenges and cannot abstain from innovation activity if they want to keep their competitive stance. We examine the impact of innovation on labor productivity in European food companies in comparison to results for firms operating in high-tech sectors. The central motivation of our study is that the observed low R&D intensity in the food sector should be mirrored in different productivity effects of innovation when compared to the high-tech sector. We use microdata from the European Union s Community Innovation Survey (CIS) and apply an endogeneity-robust multi-stage model that has been applied by various recent studies. Our results point out major differences between the examined subsectors. While we find strong positive effects of innovation on labor productivity for food firms, we find insignificant effects in the high-tech sector. This suggests that the returns to innovation might be best evaluated separately by sector rather than for the manufacturing sector as a whole. Acknowledgement :

Suggested Citation

  • Frick, F. & Jantke, C. & Sauer, J., 2018. "Innovation and Productivity in the Food vs. the High-Tech Manufacturing Sector," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277246, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae18:277246
    DOI: 10.22004/ag.econ.277246
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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).
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    4. Ángela Triguero & David Córcoles & María C. Cuerva, 2013. "Differences in Innovation Between Food and Manufacturing Firms: An Analysis of Persistence," Agribusiness, John Wiley & Sons, Ltd., vol. 29(3), pages 273-292, June.
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    9. 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.
    10. Loof, Hans & Heshmati, Almas, 2002. "Knowledge capital and performance heterogeneity: : A firm-level innovation study," International Journal of Production Economics, Elsevier, vol. 76(1), pages 61-85, March.
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    13. repec:bla:etrans:v:25:y:2017:i:3:p:527-551 is not listed on IDEAS
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    Keywords

    Labor and Human Capital;

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