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Innovation and Productivity Across Four European Countries

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Author Info
Rachel Griffith
Elena Huergo
Jacques Mairesse
Bettina Peters

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Abstract

This paper compares the role innovation plays in productivity across four European countries, France, Germany, Spain, and the UK, using firm-level data from the internationally harmonized Community Innovation Surveys (CIS3). Despite a considerable number of national firm-level studies analysing this relationship, cross-country comparisons using micro data are still rare. We apply a structural model that describes the link between R&D expenditure, innovation output, and productivity (CDM model). Our econometric results suggest that overall the systems driving innovation and productivity are remarkably similar across these four countries, although we also find interesting differences, particularly in the variation in productivity that is associated with more or less innovative activities. Copyright 2006, Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Oxford Review of Economic Policy.

Volume (Year): 22 (2006)
Issue (Month): 4 (Winter)
Pages: 483-498
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Handle: RePEc:oup:oxford:v:22:y:2006:i:4:p:483-498

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Jose Miguel Benavente, 2006. "The role of research and innovation in promoting productivity in chile," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 15(4-5), pages 301-315, June. [Downloadable!] (restricted)
  2. Parisi, Maria Laura & Schiantarelli, Fabio & Sembenelli, Alessandro, 2006. "Productivity, innovation and R&D: Micro evidence for Italy," European Economic Review, Elsevier, vol. 50(8), pages 2037-2061, November. [Downloadable!] (restricted)
  3. Mairesse,Jacques & Mohnen,Pierre, 2004. "The Importance of R&D for Innovation: A Reassessment Using French Survey Data," Research Memoranda 022, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
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  4. Luuk Klomp, George Van Leeuwen, 2001. "Linking Innovation and Firm Performance: A New Approach," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 8(3), pages 343-364, November. [Downloadable!] (restricted)
  5. Z, Griliches ; Jacques Mairesse, . "Production Functions : The Search for Identification," Working Papers 97-30, Centre de Recherche en Economie et Statistique. [Downloadable!]
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  6. Bronwyn H. Hall & Jacques Mairesse, 2006. "Empirical Studies of Innovation in the Knowledge Driven Economy," NBER Working Papers 12320, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
  8. Gary Jefferson & Bai Huamao & Guan Xiaojing & Yu Xiaoyun, 2006. "R&D Performance in Chinese industry," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 15(4-5), pages 345-366, June. [Downloadable!] (restricted)
  9. Griliches, Zvi, 1994. "Productivity, R&D, and the Data Constraint," American Economic Review, American Economic Association, vol. 84(1), pages 1-23, March.
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  10. Jacques Mairesse & Jordi Jaumandreu, 2005. "Panel-data Estimates of the Production Function and the Revenue Function: What Difference Does It Make?," Scandinavian Journal of Economics, Blackwell Publishing, vol. 107(4), pages 651-672, December. [Downloadable!] (restricted)
  11. Cohen, Wesley M & Klepper, Steven, 1996. "A Reprise of Size and R&D," Economic Journal, Royal Economic Society, vol. 106(437), pages 925-51, July. [Downloadable!] (restricted)
  12. Spence, Michael, 1984. "Cost Reduction, Competition, and Industry Performance," Econometrica, Econometric Society, vol. 52(1), pages 101-21, January. [Downloadable!] (restricted)
  13. Janz, Norbert & Lööf, Hans & Peters, Bettina, 2004. "Firm Level Innovation and Productivity - Is there a Common Story Across Countries?," Working Paper Series in Economics and Institutions of Innovation 24, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies. [Downloadable!]
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  14. Mohnen, Pierre & Mairesse, Jacques & Dagenais, Marcel, 2006. "Innovativity: A comparison across seven European countries," UNU-MERIT Working Paper Series 027, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
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  15. Zvi Griliches, 1979. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 92-116, Spring. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Bronwyn H. Hall & Francesca Lotti & Jacques Mairesse, 2008. "Innovation and Productivity in SMEs: Empirical Evidence for Italy," NBER Working Papers 14594, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Rupert Harrison & Jordi Jaumandreu & Jacques Mairesse & Bettina Peters, 2008. "Does Innovation Stimulate Employment? A Firm-Level Analysis Using Comparable Micro-Data from Four European Countries," NBER Working Papers 14216, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Harrison, Rupert & Jaumandreu, Jordi & Mairesse, Jacques & Peters, Bettina, 2005. "Does innovation stimulate employment? A firm-level analysis using comparable micro data on four European countries," MPRA Paper 1245, University Library of Munich, Germany. [Downloadable!]
  4. Stéphane Lhuillery, 2009. "In search of lost disincentive effect from intra-industry spillovers," CEMI Working Papers cemi-workingpaper-2009-00, Ecole Polytechnique Fédérale de Lausanne, Collège du Management de la Technologie, Management of Technology and Entrepreneurship Institute, Chaire en Economie et Management de l'Innovation. [Downloadable!]
  5. Enrico Santarelli & Francesca Lotti, 2007. "The Relationship among innovative Output, Productivity, and Profitability. A test comparing USPTO and EPO data," Jena Economic Research Papers in Economics 2007-020, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek. [Downloadable!]
  6. Christian Rammer & Dirk Czarnitzki & Alfred Spielkamp, 2009. "Innovation success of non-R&D-performers: substituting technology by management in SMEs," Small Business Economics, Springer, vol. 33(1), pages 35-58, June. [Downloadable!] (restricted)
  7. Pierre Therrien & Petr Hanel, 2009. "Skills required for innovation: A review of the literature," Cahiers de recherche 09-16, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
  8. Tobias Schmidt & Birgit Aschhoff, 2007. "Die Nutzung der Innovationsdaten des Mannheimer Innovationspanels für die Politikberatung," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 76(3), pages 17-28. [Downloadable!] (restricted)
  9. Ådne Cappelen, Arvid Raknerud and Marina Rybalka, 2008. "The effects of R&D tax credits on patenting and innovations," Discussion Papers 565, Research Department of Statistics Norway. [Downloadable!]
  10. Elena Cefis, 2008. "The Impact of M&A on Technology Sourcing Strategies," LEM Papers Series 2008/25, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
  11. Joel Stiebale & Frank Reize, 2008. "The Impact of FDI on Innovation in Target Firms," Ruhr Economic Papers 0050, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen. [Downloadable!]
  12. Pierre Mohnen & Pierre Therrien, 2005. "Comparing the Innovation Performance in Canadian, French and German Manufacturing Enterprises," CIRANO Working Papers 2005s-33, CIRANO. [Downloadable!]
  13. Morone, Piergiuseppe & Petraglia, Carmelo & Testa, Giuseppina, 2008. "Proximity and Innovation in Italian SMEs," MPRA Paper 13329, University Library of Munich, Germany. [Downloadable!]
  14. Coccia Mario, 2008. "Democratization is the determinant of technological change," CERIS Working Paper 200806, Institute for Economic Research on Firms and Growth - Moncalieri (TO). [Downloadable!]
  15. Joze P. Damijan & Crt Kostevc & Saso Polanec, 2008. "From innovation to exporting or vice versa? Causal link between innovation activity and exporting in Slovenian microdata," LICOS Discussion Papers 20408, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
  16. Joze P. Damijan & Crt Kostevc & Matija Rojec, 2008. "Innovation and Firms' Productivity Growth in Slovenia: Sensitivity of Results to Sectoral Heterogeneity and to Estimation Method," LICOS Discussion Papers 20308, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
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