Don't Stop Me Now: Barriers to innovation and firm productivity

Alex Coad (), Maria Savona () and Gabriele Pellegrino

SPRU Working Paper Series from SPRU - Science Policy Research Unit, University of Sussex Business School

Abstract: This paper analyses the effect of financial, knowledge, demand, market structure and regulation barriers to innovation on firms’ economic performance. It contributes to the literature on barriers to innovation in a two-fold way. First, it disentangles the mediated effect of obstacles, via product, process and organisational innovation, on labour productivity. Second, it accounts for the differentiated effect that each of the barriers has on firms positioned along the productivity distribution. We do so by employing both quantile regression techniques and propensity score matching on the UK CIS panel 2002-2010 merged with the Business Structure database. While we find evidence that financial obstacles negatively affect productivity across the distribution, and are more pronounced for young rather than small firms, knowledge and regulatory obstacles mostly affect high productivity firms. Interestingly, the perceptions of market structure and demand obstacles are positively associated to productivity performance, confirming their “revealed” rather than “deterring” nature.

Keywords: Barriers to innovation; labour productivity; quantile regressions; propensity score matching (search for similar items in EconPapers)
JEL-codes: C23 O31 O32 O33 (search for similar items in EconPapers)
Date: 2014-04
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff and nep-ino
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:sru:ssewps:2014-04

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