Product market regulation, innovation and productivity

Bruno Amable, Ivan Ledezma and Stéphane Robin

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

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 liberalisation

Keywords: Product market regulation; innovation; productivity; growth (search for similar items in EconPapers)
JEL-codes: D24 O43 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2014-03
New Economics Papers: this item is included in nep-eff, nep-ger, nep-ino, nep-reg, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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ftp://mse.univ-paris1.fr/pub/mse/CES2014/14025.pdf (application/pdf)

Related works:
Journal Article: Product market regulation, innovation, and productivity (2016)
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:mse:cesdoc:14025

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