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Innovation capabilities and returns to scale

Author

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  • Carine Peeters
  • Bruno Van Pottelsberghe

Abstract

Specific innovation capabilities enable large firms to depart from constant returns to scale and benefit from significant economies of scale. These capabilities improve the quality of the labor force organization and therefore positively impact labor productivity.

Suggested Citation

  • Carine Peeters & Bruno Van Pottelsberghe, 2005. "Innovation capabilities and returns to scale," Working Papers CEB 05-002.RS, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:sol:wpaper:05-002
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    References listed on IDEAS

    as
    1. Baldwin, John R. & Johnson, Joanne, 1996. "Business strategies in more- and less-innovative firms in Canada," Research Policy, Elsevier, vol. 25(5), pages 785-804, August.
    2. Paul Geroski & Steve Machin & John Van Reenen, 1993. "The Profitability of Innovating Firms," RAND Journal of Economics, The RAND Corporation, vol. 24(2), pages 198-211, Summer.
    3. Carine Peeters & Bruno Van Pottelsberghe, 2003. "Measuring innovation competencies and performances: a survey of large firms in Belgium," Working Papers CEB 04-005.RS, ULB -- Universite Libre de Bruxelles.
    4. Loof, Hans & Heshmati, Almas, 2002. "Knowledge capital and performance heterogeneity: : A firm-level innovation study," International Journal of Production Economics, Elsevier, vol. 76(1), pages 61-85, March.
    5. Peeters, Carine & Pottelsberghe de la Potterie, Bruno van, 2003. "Organizational Competencies and Innovation Performances: The Case of Large Firms in Belgium," IIR Working Paper 03-19, Institute of Innovation Research, Hitotsubashi University.
    6. Hall, Bronwyn H. & Mairesse, Jacques, 1995. "Exploring the relationship between R&D and productivity in French manufacturing firms," Journal of Econometrics, Elsevier, vol. 65(1), pages 263-293, January.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Carine Peeters & Bruno Van Pottelsberghe, 2004. "Innovation capabilities and firm labor productivity," Working Papers CEB 04-030.RS, ULB -- Universite Libre de Bruxelles.

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    More about this item

    Keywords

    Innovation; firm capabilities; labor productivity; returns to scale.;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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