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R&D Embodied Technological Change, Producers - Users Interaction, and Productivity at the Firm Level: A Germany-Italy Comparison

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  • F. Lotti
  • E. Santarelli

Abstract

This paper follows a knowledge production function approach to assess the contribution of R&D spending, the purchase of new machinery, and producers-users interaction to the productivity performance of German and Italian firms in manufacturing. For this purpose it employs micro-aggregated data from the First Community Innovation Survey. The regression analysis confirms the results of previous studies that technological change embodied in new machinery and capital equipment is a major factor affecting the productivity level of manufacturing firms in most industries (in particular in Italy), although the role of R&D activities is crucial for most firms in both countries, and that this is also the case in traditional consumer goods industries such as textiles, clothing, and leather & leather products. Conversely, only for Germany does producers-users interaction prove significantly to influence the productivity level of firms in certain industries.

Suggested Citation

  • F. Lotti & E. Santarelli, 1998. "R&D Embodied Technological Change, Producers - Users Interaction, and Productivity at the Firm Level: A Germany-Italy Comparison," Working Papers 323, Dipartimento Scienze Economiche, Universita' di Bologna.
  • Handle: RePEc:bol:bodewp:323
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    References listed on IDEAS

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    1. Harald Gruber, 1998. "The diffusion of innovations in protected industries: the textile industry," Applied Economics, Taylor & Francis Journals, vol. 30(1), pages 77-83.
    2. Hall, Bronwyn H & Griliches, Zvi & Hausman, Jerry A, 1986. "Patents and R and D: Is There a Lag?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(2), pages 265-283, June.
    3. Zvi Griliches, 1984. "R&D, Patents, and Productivity," NBER Books, National Bureau of Economic Research, Inc, number gril84-1.
    4. Colombo, Massimo G & Mosconi, Rocco, 1995. "Complementarity and Cumulative Learning Effects in the Early Diffusion of Multiple Technologies," Journal of Industrial Economics, Wiley Blackwell, vol. 43(1), pages 13-48, March.
    5. Alessandro Sterlacchini, 1998. "Inputs And Outputs Of Innovative Activities In Italian Manufacturing," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(4), pages 323-344.
    6. Leoncini, R. & Maggioni, M. A. & Montresor, S., 1996. "Intersectoral innovation flows and national technological systems: network analysis for comparing Italy and Germany," Research Policy, Elsevier, vol. 25(3), pages 415-430, May.
    7. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
    8. Mowery, David & Rosenberg, Nathan, 1993. "The influence of market demand upon innovation: A critical review of some recent empirical studies," Research Policy, Elsevier, vol. 22(2), pages 107-108, April.
    9. Audretsch, David B. & Santarelli, Enrico & Vivarelli, Marco, 1999. "Start-up size and industrial dynamics: some evidence from Italian manufacturing," International Journal of Industrial Organization, Elsevier, vol. 17(7), pages 965-983, October.
    10. Andersen, E S, 1991. "Techno-economic Paradigms as Typical Interfaces between Producers and Users," Journal of Evolutionary Economics, Springer, vol. 1(2), pages 119-144, April.
    11. Tor Jakob Klette, 1996. "R&D, Scope Economies, and Plant Performance," RAND Journal of Economics, The RAND Corporation, vol. 27(3), pages 502-522, Autumn.
    12. Zvi Griliches & Jacques Mairesse, 1981. "Productivity and R and D at the Firm Level," NBER Working Papers 0826, National Bureau of Economic Research, Inc.
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