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Does Innovation Help the Good or the Poor Performing Firms?

Joze Damijan, Crt Kostevc and Matija Rojec

LICOS Discussion Papers from LICOS - Centre for Institutions and Economic Performance, KU Leuven

Abstract: Using firm-level innovation data for a large sample of Slovenian firms in the period 1996-2002, the paper finds surprising results that innovation is not benefitting all firms. We find that only manufacturing firms with below average productivity growth (the lowest four deciles) are likely to experience significant benefits from successful innovation, while faster growing firms do not extract any additional benefits from innovation. This evidence demonstrates how innovation can affect the observed convergence of firms in terms of productivity in the manufacturing sector.

Keywords: research and development; innovation; knowledge spillovers; productivity growth (search for similar items in EconPapers)
JEL-codes: D24 (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ent, nep-ino, nep-knm, nep-mic, nep-tid and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://www.econ.kuleuven.be/licos/publications/dp/dp230.pdf

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Journal Article: Does innovation help the good or the poor performing firms? (2012) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:lic:licosd:23009

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