A Comparative Perspective on Innovation and Productivity in Manufacturing and Services

Hans Lööf ()

No 1, Working Paper Series in Economics and Institutions of Innovation from Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

Abstract: This paper serves as another complementary link in a chain of a rather limited number of investigations in the R&D-innovation-productivity relationship within service industries. Innovation has been found to be a major contributor to productivity growth in manufacturing. In this paper, the importance of innovation is explored by comparing manufacturing and service firms in a sample of knowledge intensive industries. In particular we intend to find evidence on the following two issues. First, is there any evidence that the reported weak rate of productivity growth in knowledge intensive services can be explained by a low propensity to be innovative? Second, is it possible that knowledge intensive service firms are less efficient in deriving benefits from innovation than knowledge intensive manufacturing firms? Empirical results based on innovation survey data indicate a surprising similarity in innovation performance between the two categories of firms.

Keywords: Productivity; Innovation; Manufacturing; Services; Applied Econometrics (search for similar items in EconPapers)
JEL-codes: C31 D24 L60 L80 O31 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2004-01-28
New Economics Papers: this item is included in nep-bec
Note: Forthcoming
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in Entrepreneurship, the New Economy and Public Policy, Scumpeterian Perspectives. Editors Uwe Cantner, Elias Dinopoulos and Robert F. Lanzilotti, Cantner, Uwe, Dinopoulos, Elias, Lanzillotti, Robert F (eds.), 2004, chapter 10, pages 181-202, Springer Berlin Heidelberg New York.
Published as the book A Comparative Perspective on Innovation and Productivity in Manufacturing and Services, 2004, Springer.

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Chapter: A comparative perspective on innovation and productivity in manufacturing and services (2005)
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