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Innovation and Productivity

  • Bronwyn H. Hall

What do we know about the relationship between innovation and productivity among firms? The workhorse model of this relationship is presented and the implications of analysis using this model and the usually available data on product and process innovation are derived. The recent empirical evidence on the relationship between innovation and productivity in firms is then surveyed. The conclusion is that there are substantial positive impacts of product innovation on revenue productivity, but that the impact of process innovation is more ambiguous, suggesting some market power on the part of the firms being analyzed.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 17178.

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Date of creation: Jun 2011
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Handle: RePEc:nbr:nberwo:17178
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