Kiel Working Papers, Kiel Institute for World Economics
No 1283:
Innovation and Productivity in European Industries
Mario Pianta and Andrea Vaona
Abstract: The labour productivity impact of innovation is
investigated in this paper combining neo-Schumpeterian insights on the
variety of innovation, with the importance of industrial structures and
firm size; two models are proposed for explaining productivity and export
success in European manufacturing industries and firm size classes. The
empirical estimates are based on data from the European innovation survey
(CIS 2), covering Austria, France, Italy, the Netherlands and the UK,
broken down by 22 sectors and for large, medium and small firms. The
econometric results, obtained adopting cross-sectional estimation
methodologies able to account for unobserved industrial characteristics,
show that productivity in Europe relies on product and process innovation,
with the support of the efficiency gains provided by a grouped business
structures. Conversely, in Italy the introduction of new machinery linked
to innovation appears as the key mechanism supporting domestic
productivity. When export success is considered, all countries have to rely
on an innovation-based model of competitiveness.
Keywords: Innovation, productivity, export performance, industries; (follow links to similar papers)
JEL-Codes: O31,; O33,; O41; (follow links to similar papers)
37 pages, July 2006
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