Innovation and productivity in manufacturing and service firms in Catalonia: a regional approach

Agusti Segarra-Blasco

Economics of Innovation and New Technology, 2010, vol. 19, issue 3, 233-258

Abstract: This article analyses the determinants of research and development (R&D) and the role of innovation on labour productivity in Catalan firms. Our empirical analysis found a considerable heterogeneity in firm performances between the manufacturing and service industries and between low- and high-tech industries. The frontiers that separate manufacturing and service industries are increasingly blurred. In Catalonia high-tech knowledge-intensive services (KIS) play a strategic role in promoting innovation in both manufacturing and service industries, and driving growth throughout the regional economy. Empirical results show new firms created during the period 2002-2004 that have a greater R&D intensity than incumbent firms (54.1% in high-tech manufacturing industries and 68.8% in high-tech KIS). Small and young firms in the high-tech KIS sector are very prone to carrying out R&D and they invest more in innovation projects. R&D expenditures, output innovation, investment in physical capital, market share and export have positive effects on labour productivity in both the manufacturing and service sectors. Firm size, on the other hand, has a positive effect on productivity in manufacturing industries but not in services.

Keywords: innovation; R&D; productivity; knowledge-intensive services (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (20)

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DOI: 10.1080/10438590802469594

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