R&D, International Trade and Creative Destruction—Empirical Findings from Finnish Manufacturing Industries*

Mika Maliranta

Journal of Industry, Competition and Trade, 2005, vol. 5, issue 1, 27-58

Abstract: The determinants of productivity-enhancing micro-level restructuring are examined empirically with a panel of the twelve Finnish manufacturing industries. It is hypothesized that R&D leads to productivity diversity among plants, which in turn leads to the gradual reshuffling of input shares in the presence of dynamic competitive pressure. The effect of the “creative destruction” on industry productivity growth is measured with the between-component of productivity decomposition. Econometric results indicate with reasonable robustness that R&D generates creative destruction with a lag of several years. Some evidence is found that imports stimulate productivity-enhancing restructuring, especially when domestic R&D is low. Copyright Springer Science + Business Media, Inc. 2005

Keywords: R&D; competition; international trade; productivity; plant-level restructuring (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (9)

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DOI: 10.1007/s10842-005-0989-0

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