Innovation and Productivity across Four European Countries

Rachel Griffith (), Elena Huergo (), Jacques MAIRESSE () and Bettina Peters ()

No 12722, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper compares the role innovation plays in productivity across the four European countries France, Germany, Spain and the UK using firm-level data from the internationally harmonized Community Innovation Surveys (CIS3). Despite a considerable number of national firm-level studies analysing this relationship, cross-country comparisons using micro data are still rare. We apply a structural model that describes the link between R&D expenditure, innovation output and productivity (CDM model). Our econometric results suggest that overall the systems driving innovation and productivity are remarkably similar across these four countries, although we also find interesting differences, particularly in the variation in productivity that is associated with more or less innovative activities.

JEL-codes: L1 L60 O31 O33 O47 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-eec, nep-eff, nep-ino and nep-ipr
Date: 2006-12
Note: PR
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