Spatial analysis of production technology, productivity and innovation

Fikru K Alemayehu and Subal C Kumbhakar

European Review of Agricultural Economics, 2025, vol. 52, issue 3, 430-462

Abstract: This study employs a state-of-the-art econometric methodology to investigate the relationship between firm productivity and innovation, considering the spatial heterogeneity of firms and locations. It examines significant variations in productivity and production technologies among firms and locations within Norwegian food and beverage (F&B) manufacturing. Analysing data from 336 firms over 12 years, our findings indicate that geographical location influences production processes, productivity and productivity persistence. This research contributes to existing knowledge by emphasising the influence of spatial heterogeneity on productivity and innovation in the F&B industry. It also recommends integrating geographical variations into regional development policies and firm-level strategies.

Keywords: production function; heterogeneity; proxy variable; spatial analysis; innovation (search for similar items in EconPapers)
Date: 2025
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