EconPapers    
Economics at your fingertips  
 

Absorptive capacity in New Zealand firms: Measurement and importance

Richard Harris () and Trinh Le ()

No 18_01, Working Papers from Motu Economic and Public Policy Research

Abstract: To the best of our knowledge, this paper reports the first set of nationally representative results on the importance of ‘absorptive capacity’. Absorptive capacity is generally defined as a firm's ability to internalise external knowledge. Using data principally from the New Zealand Business Operations Survey, we measure absorptive capacity across a 10-year period and investigate if it remains stable in the long term. This is followed by considering how firms’ characteristics vary across levels of absorptive capacity and most importantly whether such capacity determines firms’ productivity performance across the primary, manufacturing and service sectors. Our results show that relative to other influences, absorptive capacity as measured here has a substantial influence on exporting, innovation, and undertaking R&D. Set against relatively poor performance, the paper concludes with a discussion of how government should consider helping firms to boost their levels of absorptive capacity.

Keywords: Exports; R&D; innovation; absorptive capacity (search for similar items in EconPapers)
JEL-codes: L25 O24 O32 R11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ino and nep-sbm
Date: 2018-02
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://motu-www.motu.org.nz/wpapers/18_01.pdf

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:mtu:wpaper:18_01

Access Statistics for this paper

More papers in Working Papers from Motu Economic and Public Policy Research Contact information at EDIRC.
Bibliographic data for series maintained by Maxine Watene ().

 
Page updated 2019-02-06
Handle: RePEc:mtu:wpaper:18_01