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Innovation and productivity in manufacturing and service firms in Catalonia: a regional approach

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  • Agusti Segarra-Blasco

Abstract

This article analyses the determinants of research and development (R&D) and the role of innovation on labour productivity in Catalan firms. Our empirical analysis found a considerable heterogeneity in firm performances between the manufacturing and service industries and between low- and high-tech industries. The frontiers that separate manufacturing and service industries are increasingly blurred. In Catalonia high-tech knowledge-intensive services (KIS) play a strategic role in promoting innovation in both manufacturing and service industries, and driving growth throughout the regional economy. Empirical results show new firms created during the period 2002-2004 that have a greater R&D intensity than incumbent firms (54.1% in high-tech manufacturing industries and 68.8% in high-tech KIS). Small and young firms in the high-tech KIS sector are very prone to carrying out R&D and they invest more in innovation projects. R&D expenditures, output innovation, investment in physical capital, market share and export have positive effects on labour productivity in both the manufacturing and service sectors. Firm size, on the other hand, has a positive effect on productivity in manufacturing industries but not in services.

Suggested Citation

  • Agusti Segarra-Blasco, 2010. "Innovation and productivity in manufacturing and service firms in Catalonia: a regional approach," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 19(3), pages 233-258.
    • Handle: RePEc:taf:ecinnt:v:19:y:2010:i:3:p:233-258
    DOI: 10.1080/10438590802469594
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    1. Hall, Bronwyn H., 1992. "Investment and Research and Development at the Firm Level: Does the Source of Financing Matter?," Department of Economics, Working Paper Series qt5j59j6x3, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    2. Agustí Segarra-Blasco & Mercedes Teruel-Carrizosa, 2006. "Productivity growth and competition in spanish manufacturing firms: What has happened in recent years?," Working Papers CREAP2006-09, Xarxa de Referència en Economia Aplicada (XREAP), revised Dec 2006.
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    Cited by:

    1. Audretsch, David B. & Kritikos, Alexander S. & Schiersch, Alexander, 2020. "Microfirms and innovation in the service sector," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 55(4), pages 997-1018.
    2. Lucian Belascu & Alexandra Horobet & Georgiana Vrinceanu & Consuela Popescu, 2021. "Performance Dissimilarities in European Union Manufacturing: The Effect of Ownership and Technological Intensity," Sustainability, MDPI, vol. 13(18), pages 1-19, September.
    3. Alejandro García-Pozo & Juan Antonio Campos-Soria & J. Aníbal Núñez-Carrasco, 2021. "Technological innovation and productivity across Spanish regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 67(1), pages 167-187, August.
    4. Audretsch, David & Hafenstein, Marian & Kritikos, Alexander S. & Schiersch, Alexander, 2018. "Firm Size and Innovation in the Service Sector," IZA Discussion Papers 12035, Institute of Labor Economics (IZA).
    5. Esther Goya & Esther Vayá & Jordi Suriñach, 2011. "Productivity and innovation spillovers: Micro evidence from Spain," IREA Working Papers 201126, University of Barcelona, Research Institute of Applied Economics, revised Dec 2011.
    6. Alarcón, José Carlos & Aguilar, Rocio & Galán, Jose Luis, 2019. "Determinants of innovation output in Spanish knowledge-intensive service firms: Stability analysis throughout the economic crisis of 2008," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 228-244.
    7. Maria Manuela Natário & João Pedro Couto & Ascensão Maria Braga & Teresa Maria Tiago, 2011. "Dynamics of innovation in European regions," ERSA conference papers ersa11p466, European Regional Science Association.
    8. César Rodríguez-Gutiérrez & Juan Francisco Canal-Domínguez, 2020. "Knowledge capital and productivity in Spanish industry," Revista de Economía Laboral - Spanish Journal of Labour Economics, Asociación Española de Economía Laboral - AEET, vol. 17, pages 46-64.
    9. Seyedeh Khadijeh Taghizadeh & Syed Abidur Rahman & Hasliza Abdul Halim & Noor Hazlina Ahmad, 2017. "Dwelling into Service Innovation Management Practices: A Comparison Between Telecommunication Industry in Malaysia and Bangladesh," Global Business Review, International Management Institute, vol. 18(1), pages 87-98, February.
    10. Simon Ndicu & Lucy Wacuka, 2017. "The Intensity of Knowledge Capital Investment in Kenya: Evidence from Manufacturing and Service Sectors," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(10), pages 179-188, October.
    11. Esther Goya & Esther Vayá & Jordi Suriñach, 2012. "“Do intra- and inter-industry spillovers matter? CDM model estimates for Spain”," AQR Working Papers 201207, University of Barcelona, Regional Quantitative Analysis Group, revised Sep 2012.
    12. Ortega-Argilés, Raquel & Piva, Mariacristina & Vivarelli, Marco, 2011. "Productivity Gains from R&D Investment: Are High-Tech Sectors Still Ahead?," IZA Discussion Papers 5975, Institute of Labor Economics (IZA).
    13. Chang Li & Mingyang Li & Lu Zhang & Tingyi Li & Hanzhen Ouyang & Sanggyun Na, 2019. "Has the High-Tech Industry along the Belt and Road in China Achieved Green Growth with Technological Innovation Efficiency and Environmental Sustainability?," IJERPH, MDPI, vol. 16(17), pages 1-18, August.
    14. Mercedes Teruel & Agustí Segarra, 2011. "Productivity and R&D sources in manufacturing and service firms in Catalonia: a regional approach," ERSA conference papers ersa11p1860, European Regional Science Association.

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