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R&D vs. Other Factor Inputs in a High-Tech Industry

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  • Pii Elina Berghäll

Abstract

According to knowledge-based growth theories, catch-up with the global technology frontier calls for a shift from physical investment to innovation. This prevailing premise in Finland is tested with an unbalanced panel of firms in Finnish information and communications technology (ICT) manufacturing, over a period of rapid growth, 1990--2003. Stochastic frontier model estimation results are overwhelmed by scale elasticity associated productivity growth. Contrary to beliefs, R&D productivity was relatively low, regardless if measured by efficiency impacts of R&D intensity, technical change or R&D elasticity of output. Results are consistent with industry outcomes and reveal internal causes to the subsequent downfall of ICT manufacturing in Finland.

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  • Pii Elina Berghäll, 2012. "R&D vs. Other Factor Inputs in a High-Tech Industry," Industry and Innovation, Taylor & Francis Journals, vol. 19(2), pages 127-153, February.
    • Handle: RePEc:taf:indinn:v:19:y:2012:i:2:p:127-153
    DOI: 10.1080/13662716.2012.650882
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    1. Geomina Turlea & Daniel Nepelski & Giuditta de Prato & Sven Lindmark & Andrea de Panizza & Lucio Picci & Paul Desruelle & David Broster, 2010. "The 2010 Report on R&D in ICT in the European Union," JRC Research Reports JRC57808, Joint Research Centre.
    2. George Symeonidis, 1996. "Innovation, Firm Size and Market Structure: Schumpeterian Hypotheses and Some New Themes," OECD Economics Department Working Papers 161, OECD Publishing.
    3. Berghäll, Elina, 2008. "Revealing Agglomeration Economies with Stochastic Frontier Modelling in the Finnish ICT Industry," Discussion Papers 435, VATT Institute for Economic Research.
    4. Jyrki Ali-Yrkkö & Petri Rouvinen & Timo Seppälä & Pekka Ylä-Anttila, 2011. "Who Captures Value in Global Supply Chains? Case Nokia N95 Smartphone," Journal of Industry, Competition and Trade, Springer, vol. 11(3), pages 263-278, September.
    5. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, April.
    6. Geomina Turlea & Sven Lindmark & Lucio Picci & Andrea de Panizza & Martin Ulbrich & Paul Desruelle & Marc Bogdanowicz & David Broster, 2009. "The 2009 Report on R&D in ICT in the European Union," JRC Research Reports JRC49951, Joint Research Centre.
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    Cited by:

    1. Aziza ZHUPAROVA & Rimma SAGIYEVA & Dinara ZHAISANOVA, 2019. "The Impact Of The Knowledge Economy Indicators On Regional Economic Growth: Evidence From Kazakhstan," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(1), pages 514-520, November.
    2. Graziella Bonanno, 2016. "ICT and R&D as inputs or efficiency determinants? Analysing Italian manufacturing firms (2007–2009)," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(3), pages 383-404, December.
    3. Elina Berghäll, 2017. "Knowledge Spillovers, the Technology Frontier and High-Tech FDI - Evidence from Finland," Finnish Economic Papers, Finnish Economic Association, vol. 28(1), pages 34-49, Autumn.
    4. Bonanno, Graziella, 2014. "ICT and R&D as inputs or efficiency determinants? Analysing the manufacturing Italian firms over the 2007-2009," MPRA Paper 57640, University Library of Munich, Germany.
    5. Berghäll, Pii Elina, 2013. "Miksi eurosta kannattaa erota [Why Finland should abandon the euro]," MPRA Paper 68830, University Library of Munich, Germany, revised 15 Jan 2016.

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