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Do process innovations boost SMEs productivity growth?

Juan A. Mañez, María Rochina-Barrachina (), Amparo Sanchis-Llopis () and Juan Sanchis ()
Authors registered in the RePEc Author Service: Juan A. Sanchis Llopis () and Maria Engracia Rochina Barrachina

Empirical Economics, 2013, vol. 44, issue 3, 1373-1405

Abstract: In this paper, we explore in depth the effect of process innovations on total factor productivity growth for small and medium enterprises (SMEs), taking into account the potential endogeneity problem that may be caused by self-selection into these activities. First, we analyse whether the ex-ante most productive SMEs are those that start introducing process innovations; then, we test whether process innovations boost SMEs productivity growth using matching techniques to control for the possibility that selection into introducing process innovations may not be a random process. We use a sample of Spanish manufacturing SMEs for the period 1991–2002, drawn from the Encuesta sobre Estrategias Empresariales. Our results show that the introduction of process innovations yields an extra productivity growth, and that the life span of this extra productivity growth lasts for only one period. Copyright Springer-Verlag 2013

Keywords: Process innovations; TFP; Stochastic dominance; Matching techniques; C14; C21; D24; L1; L25; O3 (search for similar items in EconPapers)
Date: 2013
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