PRODUCTIVITY IMPLICATIONS OF R&D, INNOVATION AND CAPITAL ACCUMULATION FOR INCUMBENTS AND ENTRANTS: THE CASE OF ESTONIA

Jaan Masso and Amaresh K Tiwari

No 130, University of Tartu - Faculty of Economics and Business Administration Working Paper Series from Faculty of Economics and Business Administration, University of Tartu (Estonia)

Abstract: In this paper, using Estonian Community Innovation Survey data, we study the role of R&D, capital accumulation, and innovation output on productivity for entrants and incumbents. We find that the impact of R&D investment on labour productivity is larger for the entrants com- pared to the incumbents. Entrants are found to be more productive and more heterogeneous in their total factor productivity (TFP) than the incumbents. Moreover, entrants who innovate are on average, in terms of TFP, 25% more productive than the entrants who do not, while the corresponding figure for the incumbents is 7%. In addition, it is mostly the incumbents who benefit from within-industry knowledge that is produced outside their own firm. Finally, for both entrants and incumbents, embodied technological change through capital accumulation is found to be more effective in generating productivity growth than R&D expenditure.

Keywords: R&D; Innovation; Productivity; Entrants; Incumbents; Spillovers (search for similar items in EconPapers)
Pages: 51 pages
Date: 2021
New Economics Papers: this item is included in nep-cse, nep-eff, nep-sbm, nep-tid and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.mtk.ut.ee/sites/default/files/mtk/RePEc/mtk/febpdf/febawb130.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.mtk.ut.ee/sites/default/files/mtk/RePEc/mtk/febpdf/febawb130.pdf [301 Moved Permanently]--> https://mtk.ut.ee/sites/default/files/mtk/RePEc/mtk/febpdf/febawb130.pdf [302 Found]--> https://majandus.ut.ee/et%c2%a0)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mtk:febawb:130

Access Statistics for this paper

More papers in University of Tartu - Faculty of Economics and Business Administration Working Paper Series from Faculty of Economics and Business Administration, University of Tartu (Estonia) Contact information at EDIRC.
Bibliographic data for series maintained by Anne Reino ().