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Knowledge Management, Innovation, and Productivity: A Firm Level Exploration Based on French Manufacturing CIS3 Data

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  • Elisabeth Kremp
  • Jacques Mairesse

Abstract

In modern knowledge driven economies, firms are increasingly aware that individual and collective knowledge is a major factor of economic performance. The larger the firms and the stronger their connection with technology intensive industries, the more are they likely to set up knowledge management (KM) policies, such as promoting a culture of information and knowledge sharing (C), motivating employees and executives to remain with the firm (R), forging alliances and partnerships for knowledge acquisition (A), implementing written knowledge management rules (W). The French 1998-2000 Community Innovation Survey (CIS3) has surveyed the use of these four knowledge management policies for a representative sample of manufacturing firms. The micro econometric analysis of the survey tends to confirm that knowledge management indeed contributes significantly to firm innovative performance and to its productivity. The impacts of adoption of the four surveyed KM practices on firm innovative and productivity performance are not completely accounted by firm size, industry, research & development (R&D) efforts or other factors, but persist to a sizeable extent after controlling for all these factors.

Suggested Citation

  • Elisabeth Kremp & Jacques Mairesse, 2004. "Knowledge Management, Innovation, and Productivity: A Firm Level Exploration Based on French Manufacturing CIS3 Data," NBER Working Papers 10237, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:10237
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    References listed on IDEAS

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    1. Jacques Mairesse & Mohamed Sassenou, 1991. "R&D Productivity: A Survey of Econometric Studies at the Firm Level," NBER Working Papers 3666, National Bureau of Economic Research, Inc.
    2. Dominique Foray, 2006. "The Economics of Knowledge," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262562235, November.
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    Cited by:

    1. Madalina Constantinescu, 2008. "Knowledge Management Through The Lens Of Innovation And Labour Productivity In A Knowledge Based Economy," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 3(2(4)_Summ).
    2. Bertrand Bellon & Adel Ben Youssef & Hatem M’Henni, 2007. "Les capacités d'usage des technologies de l'information et de la communication dans les économies émergentes," Revue Tiers-Monde, Armand Colin, vol. 0(4), pages 919-936.
    3. Bronwyn Hall & Jacques Mairesse, 2006. "Empirical studies of innovation in the knowledge-driven economy," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 289-299.
    4. Christian Le Bas & Caroline Mothe & Thuc Uyen Nguyen-Thi, 2011. "Technological innovation persistence : Literature survey and exploration of the role of organizational innovation," Working Papers 1132, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    5. Davide Antonioli & Massimiliano Mazzanti & Paolo Pini, 2010. "Productivity, innovation strategies and industrial relations in SMEs. Empirical evidence for a local production system in northern Italy," International Review of Applied Economics, Taylor & Francis Journals, vol. 24(4), pages 453-482.
    6. Guillou, Sarah & Lazaric, Nathalie & Longhi, Christian & Rochhia, Sylvie, 2009. "The French defence industry in the knowledge management era: A historical overview and evidence from empirical data," Research Policy, Elsevier, vol. 38(1), pages 170-180, February.
    7. Thomas Hellmann & Enrico Perotti, 2011. "The Circulation of Ideas in Firms and Markets," Management Science, INFORMS, vol. 57(10), pages 1813-1826, October.
    8. Sarbu, Miruna, 2013. "Does social software increase labour productivity?," ZEW Discussion Papers 13-041, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    9. Thuc Uyen Nguyen-Thi & Caroline Mothe, 2010. "The Link Between Non Technological Innovations And Technological Innovation," Post-Print hal-00920069, HAL.
    10. repec:wsi:jikmxx:v:16:y:2017:i:03:n:s0219649217500241 is not listed on IDEAS
    11. Halpern, László & Muraközy, Balázs, 2010. "Innováció és vállalati teljesítmény Magyarországon
      [Innovation and company performance in Hungary]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 293-317.
    12. Christian Le Bas & Caroline Mothe & Thuc Uyen Nguyen-Thi, 2015. "The differentiated impacts of organizational innovation practices on technological innovation persistence," Post-Print halshs-01497289, HAL.
    13. Davide Antonioli & Massimiliano Mazzanti, 2009. "Techno-organisational strategies, environmental innovations and economic performances. Micro-evidence from an SME-based industrial district," Journal of Innovation Economics, De Boeck Université, vol. 0(1), pages 145-168.
    14. Sid Durbin, 2004. "Review of Workplace Skills, Technology Adoption and Firm Productivity: A Review," Treasury Working Paper Series 04/16, New Zealand Treasury.
    15. Carine Peeters & Bruno Van Pottelsberghe, 2004. "Innovation capabilities and firm labor productivity," Working Papers CEB 04-030.RS, ULB -- Universite Libre de Bruxelles.
    16. Cassey LEE, 2012. "Knowledge Flows, Organization and Innovation: Firm-Level Evidence from Malaysia," Working Papers DP-2012-11, Economic Research Institute for ASEAN and East Asia (ERIA).
    17. Cohen, Wesley M., 2010. "Fifty Years of Empirical Studies of Innovative Activity and Performance," Handbook of the Economics of Innovation, Elsevier.
    18. Matteo Bugamelli & Luigi Cannari & Francesca Lotti & Silvia Magri, 2012. "The innovation gap of Italy�s production system: roots and possible solutions," Questioni di Economia e Finanza (Occasional Papers) 121, Bank of Italy, Economic Research and International Relations Area.
    19. Huergo, Elena, 2006. "The role of technological management as a source of innovation: Evidence from Spanish manufacturing firms," Research Policy, Elsevier, vol. 35(9), pages 1377-1388, November.

    More about this item

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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