IDEAS home Printed from https://ideas.repec.org/p/wfo/wpaper/y2012i436.html
   My bibliography  Save this paper

Innovation at the Firm Level across Countries with Different Economic and Technological Capacity

Author

Listed:
  • Andreas Reinstaller

    (WIFO)

  • Fabian Unterlass

    (WIFO)

Abstract

This paper presents an analysis of innovation behaviour at the firm level across countries with different levels of technological capabilities and economic development. Using data from the Community Innovation Survey for 20 European countries the paper shows that the impact of total innovation expenditures – including next to R&D also outlays for technology transfer, the market introduction of innovations or new designs – increases monotonically across countries with their level of technological capabilities. R&D investments instead have a significant impact on the generation of innovations only for firms located in countries with higher levels of technological capabilities. Firm specific competencies to suggest or contribute to innovation projects have a more significant effect on the innovation output the higher the level of economic development of the countries in which firms are located. Finally, the paper presents also evidence that R&D does not generally increase the absorptive capabilities of firms.

Suggested Citation

  • Andreas Reinstaller & Fabian Unterlass, 2012. "Innovation at the Firm Level across Countries with Different Economic and Technological Capacity," WIFO Working Papers 436, WIFO.
    • Handle: RePEc:wfo:wpaper:y:2012:i:436
    as

    Download full text from publisher

    File URL: https://www.wifo.ac.at/wwa/pubid/45201
    File Function: abstract
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. John Sutton & Daniel Trefler, 2011. "Deductions from the Export Basket: Capabilities, Wealth and Trade," NBER Working Papers 16834, National Bureau of Economic Research, Inc.
    2. Peneder, Michael, 2010. "Technological regimes and the variety of innovation behaviour: Creating integrated taxonomies of firms and sectors," Research Policy, Elsevier, vol. 39(3), pages 323-334, April.
    3. Krueger, Dirk & Kumar, Krishna B., 2004. "US-Europe differences in technology-driven growth: quantifying the role of education," Journal of Monetary Economics, Elsevier, vol. 51(1), pages 161-190, January.
    4. 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.
    5. Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity Across Four European Countries," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 22(4), pages 483-498, Winter.
    6. Tor Jakob Klette & Samuel Kortum, 2004. "Innovating Firms and Aggregate Innovation," Journal of Political Economy, University of Chicago Press, vol. 112(5), pages 986-1018, October.
    7. Francis Vella, 1998. "Estimating Models with Sample Selection Bias: A Survey," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 127-169.
    8. Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-632, Nov.-Dec..
    9. Mazzoleni, Roberto & Nelson, Richard R., 2007. "Public research institutions and economic catch-up," Research Policy, Elsevier, vol. 36(10), pages 1512-1528, December.
    10. Andreas Reinstaller & Fabian Unterlass, 2012. "Comparing business R&D across countries over time: a decomposition exercise using data for the EU 27," Applied Economics Letters, Taylor & Francis Journals, vol. 19(12), pages 1143-1148, August.
    11. Pier Saviotti & Koen Frenken, 2008. "Export variety and the economic performance of countries," Journal of Evolutionary Economics, Springer, vol. 18(2), pages 201-218, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andreas Reinstaller & Werner Hölzl & Johannes Kutsam & Christian Schmid, 2013. "The Development of Productive Structures of EU Member Countries and Their International Competitiveness," WIFO Studies, WIFO, number 46823.
    2. Andreas Reinstaller, 2014. "Technologiegeber Österreich. Österreichs Wettbewerbsfähigkeit in Schlüsseltechnologien und Enwicklungspotentiale als Technologiegeber," WIFO Studies, WIFO, number 47444.
    3. Michael Peneder, 2013. "Von den "trockenen Tälern" der Risiko- und Wachstumsfinanzierung," WIFO Monatsberichte (monthly reports), WIFO, vol. 86(8), pages 637-648, August.
    4. Gunther Tichy, 2016. "Persistente Strukturprobleme trotz zutreffender Strukturprognosen," WIFO Monatsberichte (monthly reports), WIFO, vol. 89(8), pages 553-571, August.
    5. Hölzl, Werner & Janger, Jürgen, 2014. "Distance to the frontier and the perception of innovation barriers across European countries," Research Policy, Elsevier, vol. 43(4), pages 707-725.
    6. Leonardo Rocha Andrade & Leonardo Q. Cardenas & Fernando Dias Lopes & Fernando P. S. Oliveira & Kaio Cesar Fernandes, 2018. "The Impact of R&D Investments on Performance of Firms in Different Degrees of Proximity to the Technological Frontier," Economics Bulletin, AccessEcon, vol. 38(2), pages 1156-1170.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fabian Unterlass & Andreas Reinstaller, 2012. "Innovation at the firm level when the level of technological development of the home country differs: Evidence for 19 EU countries," EcoMod2012 4002, EcoMod.
    2. Bronwyn Hall & Francesca Lotti & Jacques Mairesse, 2009. "Innovation and productivity in SMEs: empirical evidence for Italy," Small Business Economics, Springer, vol. 33(1), pages 13-33, June.
    3. Criscuolo, Chiara & Mariagrazia, Squicciarini & Olavi, Lehtoranta, 2010. "R&D, innovation and productivity, and the CIS: sampling, specification and comparability issues," MPRA Paper 39261, University Library of Munich, Germany.
    4. Fassio Claudio, 2011. "Sectoral invariances or distance-from-the-frontier effect among European mid-low tech sectors," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201115, University of Turin.
    5. Rammer, Christian & Köhler, Christian & Murmann, Martin & Pesau, Agnes & Schwiebacher, Franz & Kinkel, Steffen & Kirner, Eva & Schubert, Torben & Som, Oliver, 2010. "Innovationen ohne Forschung und Entwicklung: Eine Untersuchung zu Unternehmen, die ohne eigene FuE-Tätigkeit neue Produkte und Prozesse einführen," Studien zum deutschen Innovationssystem 15-2011, Expertenkommission Forschung und Innovation (EFI) - Commission of Experts for Research and Innovation, Berlin.
    6. Julia Bock-Schappelwein & Jürgen Janger & Andreas Reinstaller, 2012. "Bildung 2025 – Die Rolle von Bildung in der österreichischen Wirtschaft," WIFO Studies, WIFO, number 45200.
    7. repec:ipt:iptwpa:jrc85346 is not listed on IDEAS
    8. Seenaiah Kale & Badri Narayan Rath, 2018. "Does Innovation Enhance Productivity In Case Of Selected Indian Manufacturing Firms?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(05), pages 1225-1250, November.
    9. Teimuraz Gogokhia & George Berulava, 2021. "Business environment reforms, innovation and firm productivity in transition economies," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(2), pages 221-245, June.
    10. Enrique López-Bazo & Elisabet Motellón, 2016. "“Innovation, heterogeneous firms, and the region”," AQR Working Papers 201607, University of Barcelona, Regional Quantitative Analysis Group, revised Apr 2016.
    11. 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.
    12. 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.
    13. 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).
    14. Magnus Lodefalk, 2014. "The role of services for manufacturing firm exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(1), pages 59-82, February.
    15. Justin Doran & Geraldine Ryan, 2016. "The Importance of the Diverse Drivers and Types of Environmental Innovation for Firm Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 25(2), pages 102-119, February.
    16. repec:lic:licosd:20308 is not listed on IDEAS
    17. Burger, Christoph & Weinmann, Jens, 2015. "Innovation performance of the US American and European electricity supply industry," Energy Policy, Elsevier, vol. 86(C), pages 351-359.
    18. Drall, Anviksha & Mandal, Sabuj Kumar, 2021. "Investigating the existence of entry barriers in rural non-farm sector (RNFS) employment in India: A theoretical modelling and an empirical analysis," World Development, Elsevier, vol. 141(C).
    19. Bernhard Dachs & Sabine Biege & Martin Borowiecki & Gunter Lay & Angela Jäger & Doris Schartinger, 2014. "Servitisation of European manufacturing: evidence from a large scale database," The Service Industries Journal, Taylor & Francis Journals, vol. 34(1), pages 5-23, January.
    20. Esther Goya & Esther Vayá & Jordi Suriñach, 2012. "“Do intra- and inter-industry spillovers matter? CDM model estimates for Spain”," IREA Working Papers 201214, University of Barcelona, Research Institute of Applied Economics, revised Sep 2012.
    21. Choi, Mincheol & Lee, Chang-Yang, 2021. "Technological diversification and R&D productivity: The moderating effects of knowledge spillovers and core-technology competence," Technovation, Elsevier, vol. 104(C).
    22. Raquel Ortega‐Argilés & Mariacristina Piva & Marco Vivarelli, 2014. "The transatlantic productivity gap: Is R&D the main culprit?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 47(4), pages 1342-1371, November.

    More about this item

    Keywords

    Innovation decision; Catching up; Technological capabilities; R&D;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wfo:wpaper:y:2012:i:436. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Florian Mayr (email available below). General contact details of provider: https://edirc.repec.org/data/wifooat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.