Product market regulation, innovation, and productivity

Bruno Amable, Ivan Ledezma and Stéphane Robin

Research Policy, 2016, vol. 45, issue 10, 2087-2104

Abstract: Several recent policy and academic contributions consider that liberalising product markets would foster innovation and growth. This paper analyses the innovation–productivity relationship at the industry-level for a sample of OECD manufacturing industries. We pay particular attention to the vertically-induced influence of product market regulation (PMR) of key input sectors of the economy on the innovative process of manufacturing and its consequences on productivity. We test for a differentiated effect of this type of PMR depending on whether countries are technological leaders or laggards in a given industry and for a given time period. Contrary to the most widespread policy claims, the innovation-boosting effects of liberalisation policies at the leading edge are systematically not supported by the data. These findings question the relevance of a research and innovation policy based on product market liberalisation.

Date: 2016
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Citations: View citations in EconPapers (33)

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Related works:
Working Paper: Product market regulation, innovation and productivity (2014)
Working Paper: Product market regulation, innovation and productivity (2014)
Working Paper: Product market regulation, innovation and productivity (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:45:y:2016:i:10:p:2087-2104

DOI: 10.1016/j.respol.2016.08.003

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