Productivity effects of innovation modes

Michael Polder, George Leeuwen, Pierre Mohnen and Wladimir Raymond ()

MPRA Paper from University Library of Munich, Germany

Abstract: Many empirical studies have confirmed the positive impact of innovation on productivity at the firm level. The focus tends to be either on R&D driven techno-logical innovation on the one hand, or on organisational changes complemented by ICT on the other. To investigate the effect of different types of innovations on produc-tivity, we propose a model with two innovation input equations (R&D and ICT) that feed into a knowledge production function consisting of a system of three innovation output equations (product innovation, process innovation and organisational innova-tion), which ultimately feeds into a productivity equation. We find that ICT is an im-portant driver of innovation in both manufacturing and services. Doing more R&D has a positive effect on product innovation in manufacturing. Organisational innova-tion has the strongest productivity effects. We only find positive effects of product and process innovation when combined with an organisational innovation.

Keywords: technological innovation; non-technological innovation; ICT; R&D; productivity; trivariate probit; CDM model (search for similar items in EconPapers)
JEL-codes: D24 O30 (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ino, nep-int, nep-ipr, nep-pr~, nep-knm, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (65)

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