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Innovation and Performance in Manufacturing Industries: A Comparison of the Nordic Countries

Author

Listed:
  • Lööf, Hans

    () (Royal Institute of Technology)

  • Heshmati, Almas

    () (Dept. of Economic Statistics, Stockholm School of Economics)

  • Asplund, Rita

    () (The Research Institute of the Finnish Economy)

  • Nåås, Svein-Olav

    () (Studies in technology)

Abstract

The availability of new internationally-harmonized innovation survey data collected from OECD countries has created some interesting opportunities for studying the following two key areas: (1) the determinants of innovation behavior at firm level, and (2) innovation as an important factor contributing to the economic growth. This paper looks at the relationship between innovation and productivity in Finland, Norway and Sweden at the firm level. Although these countries enjoy a high degree of political, social and cultural similarities, they differ largely from one another in their productivity growth and national innovation systems. The main objective here has been to examine how an identically-specified econometric model might work when the survey sampling and questionnaire are identical but the national data sets are estimated separately. Findings from the micro-based data in Europe known as Community Innovation Survey (CIS) data were subsequently investigated to see whether or not they contributed to explaining the presence of cross-country differences in aggregated productivity growth. Results reveal major discrepancies between the estimated firm-level results and the aggregated figures. Differences in the country regression results were investigated to see whether they were due to data errors, the econometric model, model specifications, estimation methods or unobservable country-specific effects. The tentative conclusion is that the representativeness of the respondent firms, the model specification and unobservable country-specific effects may partly account for the deviations between macro and micro levels.

Suggested Citation

  • Lööf, Hans & Heshmati, Almas & Asplund, Rita & Nåås, Svein-Olav, 2001. "Innovation and Performance in Manufacturing Industries: A Comparison of the Nordic Countries," SSE/EFI Working Paper Series in Economics and Finance 0457, Stockholm School of Economics.
  • Handle: RePEc:hhs:hastef:0457
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    References listed on IDEAS

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    Cited by:

    1. Massa, Isabella, 2015. "Technological change in developing countries: Trade-offs between economic, social, and environmental sustainability," MERIT Working Papers 051, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Heikkilä, Anni, 2004. "The Regional Distribution of Professional Competence in Finland," Discussion Papers 961, The Research Institute of the Finnish Economy.
    3. Priit Vahter & Jaan Masso, 2011. "The Link between Innovation and Productivity in Estonia???s Service Sectors," William Davidson Institute Working Papers Series wp1012, William Davidson Institute at the University of Michigan.
    4. Valeria Arza & Andrés López, 2010. "Innovation and Productivity in the Argentine Manufacturing Sector," IDB Publications (Working Papers) 1974, Inter-American Development Bank.
    5. Bronwyn H. Hall, 2011. "Innovation and Productivity," NBER Working Papers 17178, National Bureau of Economic Research, Inc.
    6. Emmanuel Duguet, 2006. "Innovation height, spillovers and tfp growth at the firm level: Evidence from French manufacturing," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 415-442.
    7. Kiander, Jaakko & Berghäll, Elina, 2003. "The Finnish Model of STI Policy: Experiences and Guidelines. KNOGG Thematic Network WP4 Country Report - Finland," Discussion Papers 313, VATT Institute for Economic Research.
    8. Pierre Mohnen & Pierre Therrien, 2005. "Comparing the Innovation Performance in Canadian, French and German Manufacturing Enterprises," CIRANO Working Papers 2005s-33, CIRANO.
    9. Jaan Masso & Priit Vahter, 2012. "The link between innovation and productivity in Estonia's services sector," The Service Industries Journal, Taylor & Francis Journals, vol. 32(16), pages 2527-2541, December.
    10. María Angélica Arbeláez & Mónica Parra Torrado, 2009. "Innovation, R&D Investment and Productivity in Colombia," INFORMES DE INVESTIGACIÓN 009062, FEDESARROLLO.
    11. Peters, Bettina & Lööf, Hans & Janz, Norbert, 2003. "Firm Level Innovation and Productivity: Is there a Common Story Across Countries?," ZEW Discussion Papers 03-26, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    12. Neil Thompson & Erik Stam, 2010. "Macroeconomic Dynamics and Innovation: SME innovation in the Netherlands, 1999-2009," Innovation Studies Utrecht (ISU) working paper series 10-03, Utrecht University, Department of Innovation Studies, revised May 2010.
    13. Jaan Masso & Priit Vahter, 2008. "Technological innovation and productivity in late-transition Estonia: econometric evidence from innovation surveys," The European Journal of Development Research, Taylor and Francis Journals, vol. 20(2), pages 240-261.
    14. Emmanuel Duguet, 2004. "Are RαD subsidies a substitute or a complement to privately funded RαD ?. An econometric analysis at the firm level," Revue d'économie politique, Dalloz, vol. 114(2), pages 245-274.
    15. Bi, Kexin & Huang, Ping & Wang, Xiangxiang, 2016. "Innovation performance and influencing factors of low-carbon technological innovation under the global value chain: A case of Chinese manufacturing industry," Technological Forecasting and Social Change, Elsevier, vol. 111(C), pages 275-284.
    16. Berulava, George & Gogokhia, Teimuraz, 2016. "Studying Complementarities between Modes of Innovation Strategies in Transition Economies," MPRA Paper 71277, University Library of Munich, Germany.
    17. Kaushalesh Lal & Theo Dunnewijk, 2008. "Entrepreneurship and Innovation Strategies in ICT SMEs in Enlarged Europe (EU25)," Working Papers id:1645, eSocialSciences.
    18. Hashi, Iraj & Stojčić, Nebojša, 2013. "The impact of innovation activities on firm performance using a multi-stage model: Evidence from the Community Innovation Survey 4," Research Policy, Elsevier, vol. 42(2), pages 353-366.
    19. Pierre Mohnen & Bronwyn Hall, 2013. "Innovation and Productivity: An Update," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 3(1), pages 47-65, June.
    20. Antonio Musolesi & Jean-Pierre Huiban, 2010. "Innovation and productivity in knowledge intensive business services," Journal of Productivity Analysis, Springer, vol. 34(1), pages 63-81, August.
    21. Iraj Hashi & Nebojša Stojčić, 2013. "Knowledge Spillovers, Innovation Activities, And Competitiveness Of Industries In Eu Member And Candidate Countries," Economic Annals, Faculty of Economics, University of Belgrade, vol. 58(198), pages 7-34, July - Se.
    22. Chudnovsky, Daniel & Lopez, Andres & Pupato, German, 2006. "Innovation and productivity in developing countries: A study of Argentine manufacturing firms' behavior (1992-2001)," Research Policy, Elsevier, vol. 35(2), pages 266-288, March.
    23. Michael Landesmann & Sandra M. Leitner & Robert Stehrer, 2016. "Changing Patterns in M&E-Investment-Based Innovation Strategies in CESEE and FSU Countries," wiiw Working Papers 123, The Vienna Institute for International Economic Studies, wiiw.

    More about this item

    Keywords

    Community Innovation Survey; CIS; cross-country comparisons; innovation; manufacturing; firms;

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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