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Dynamic models of R&D, innovation and productivity : panel data evidence for Dutch and French manufacturing

Author

Listed:
  • Raymond W.
  • Mairesse J.
  • Mohnen P.
  • Palm F.C.

    (UNU-MERIT)

Abstract

This paper introduces dynamics in the RD to innovation and innovation to productivity relationships, which have mostly been estimated on cross-sectional data. It considers four nonlinear dynamic simultaneous equations models that include individual effects and idiosyncratic errors correlated across equations and that differ in the way innovation enters the conditional mean of labor productivity through an observed binary indicator, an observed intensity variable or through the continuous latent variables that correspond to the observed occurrence or intensity. It estimates these models by full information maximum likelihood using twounbalanced panels of Dutch and French manufacturing firms from three waves of the Community Innovation Survey. The results provide evidence of robust unidirectional causality from innovation to productivity and of stronger persistence in productivity than in innovation.

Suggested Citation

  • Raymond W. & Mairesse J. & Mohnen P. & Palm F.C., 2013. "Dynamic models of R&D, innovation and productivity : panel data evidence for Dutch and French manufacturing," MERIT Working Papers 2013-025, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:unumer:2013025
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    File URL: https://www.merit.unu.edu/publications/wppdf/2013/wp2013-025.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Models with Panel Data; Longitudinal Data; Spatial Time Series; Truncated and Censored Models; Switching Regression Models; Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Manufacturing; Processes and Incentives; Management of Technological Innovation and R&D;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • 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
    • 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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