A Generalized Knowledge Production Function

Almas Heshmati ()

No 89, Ratio Working Papers from The Ratio Institute

Abstract: This paper presents a generalized production model based on the knowledge production function. The model allows the relationships between corporate competitiveness strategy, innovation, efficiency, productivity growth and outsourcing to be investigated at the firm level in a number of steps. First, in reviewing recent developments of researches on the above relationships, provide discussion on data and the methods of measuring these variables. Second, depending on availability of information, different measures are transferred into single multidimensional index of corporate strategy using principal component analysis. Third, stochastic frontier production function and factor productivity analysis are used to estimate the efficiency and factor productivity growth at the firm level. Fourth, the causal relationships between the five variables of interest are established and modelled. Finally, given the direction of causality, the implications of the findings for estimation of the relationship are discussed. For the empirical analysis we use Swedish firm-level innovation survey data covering both manufacturing and service sectors.

Keywords: Competition; innovation; outsourcing; productivity; efficiency; causality; firm (search for similar items in EconPapers)
JEL-codes: C31 C52 D24 L10 L60 L80 O31 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2006-04-25
New Economics Papers: this item is included in nep-eff and nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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