ICT, R&amp;D and Organizational Innovation: Exploring Complementarities in Investment and Production

Mohnen, Pierre; Polder, Michael; Leeuwen, George van

doi:10.3386/w25044

Cited by 21 publications

(17 citation statements)

References 34 publications

(51 reference statements)

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“…Furthermore, in the case of firms in services, productivity returns to investment in R&D are enhanced by investment in software. This result is consistent with recent evidence on complementarities between investments in R&D and information and communication technologies provided by Corrado et al (2017) and Mohnen et al (2018).…”

Section: Resultssupporting

confidence: 93%

Investment in Knowledge‐Based Capital and Productivity: Firm‐Level Evidence from a Small Open Economy†

Ubaldo

Siedschlag

2020

Review of Income and Wealth

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This paper examines the responsiveness of firm productivity to investment in knowledge-based capital (KBC) including a range of intangible assets such as research and development (R&D), intellectual property assets, computer software, organizational, and branding capital. A dynamic econometric model is estimated with micro-data from Ireland over the period 2006-2012. Ceteris paribus, the estimated average elasticity of productivity with respect to investment in KBC per employee is 0.3. In comparison to previous empirical studies, this paper goes beyond the representative firm approach and accounts for the heterogeneous behavior of firms which differ by ownership, size, export participation, and sector of activity. Further, the analysis finds that investing simultaneously in multiple KBC assets has complementary as well as substitution effects on firm productivity, with different interdependence patterns for specific investment combinations across groups of firms and sectors.

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Section: Resultssupporting

confidence: 93%

Investment in Knowledge‐Based Capital and Productivity: Firm‐Level Evidence from a Small Open Economy†

Ubaldo

Siedschlag

2020

Review of Income and Wealth

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“…Contrary to findings by Ding et al (2010) and Kleis, Chwelos, Ramirez, and Cockburn (2012), we find a weak relationship between ICT and R&D, this is consistent with Mohnen, Polder, & van Leeuwen (2018) who posit that there is a weak link between ICT and R&D as inputs to innovation. This phenomenon could be due to the inability of developing countries to utilize the full economic value of ICT facilities at their disposal.…”

Section: Discussionsupporting

confidence: 70%

“…Other scholars have highlighted the role of ICT in the innovation process, making strong arguments that ICT is a significant driver of innovation (Kretschmer, 2012;Hue, 2019;Idota, Bunno, & Tsuji, 2020). However, literature seldom considers the role of ICT next to R&D (Mohnen, Polder, & van Leeuwen, 2018). Venturini (2015) posits that both ICT and R&D have positive but independent effects on Total Factor Productivity (TFP), while Corrado, Haskel, & Jona-Lasinio (2017) argue that there is a relationship between ICT, R&D and innovation activities.…”

Section: Introductionmentioning

confidence: 99%

Analysis of the Determinants of Innovation in Developing Countries: A Vector Auto-regression Approach

Asunka¹,

Ma²,

Li³

et al. 2020

int.jour.sci.res.mana.

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Several factors account for innovation output in developed economies as documented in extant literature. The objective of this study is to make a case for a multi-faceted approach to innovation in developing countries. To analyze various factors affecting innovation, a sample of 43 developing countries is taken and the period of study is between 2009 and 2018. A vector auto-regression model is used in a panel data setting to test the effect of various variables on innovation at country level, a granger causality test is also conducted to determine the causal relationship among these factors that together can spur innovation activities. Findings suggest a strong influence of R&D and government procurement of technology on the advancement of innovation. R&D is largely affected by the quality of research institutions and university-industry collaborative research, thus showing the strength of the effect of these variables on innovation. Scientists and engineers with requisite expertise greatly improve a country’s innovation efforts, however, developing countries do not benefit fully from the economic value of these experts. These results show that an integration of all these factors is a good approach to enhancing innovation in developing economies.

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“…It is therefore not surprising that ICT has been proven to have a positive effect on economic growth (Khanna & Sharma, 2018;Sepehrdoust, 2018;Tolica et al, 2015). Even though many papers focus on the role of R&D and ICT separately, some authors argue that it is important to study the relationship and correlations between these two areas since they were shown to have complementary effects (Pieri et al, 2018;Khanna & Sharma, 2018;Mohnen et al, 2018). Many authors studying the factors affecting the growth of ICT sector agree that one of the key driving forces of ICT industry is R&D and innovation (Canarella & Miller, 2018;Lindmark et al, 2010;Manjón et al, 2016;Monge-Gonzálet & Hewitt, 2010;Stejskal et al, 2018;Tolica et al, 2015).…”

Section: Literature Reviewmentioning

confidence: 99%

R&D Investments in the European ICT sector: Implications for Business Performance

Huňady

Pisár

Ďurčeková

2020

Business Systems Research Journal

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BackgroundA significant share of business innovation arises from information and communication (ICT) sector. Business investment into research and development (R&D) activities can be seen as an important basis for innovation, which can further lead to better economic performance. This can be especially true for the ICT sector.ObjectivesThe paper examines the share of the ICT sector on innovation and the total R&D expenditure in selected European countries. Furthermore, our aim is to test the potential positive correlation between R&D expenditure, productivity and the value added in the sector.Methods/ApproachThe goals of the paper has been tested by empirical data analysis using the pane regression analysis. We examined panel data for 24 European countries in the 2008-2016 period.ResultsThe highest share of business R&D expenditure in ICT has been captured in Nordic countries. Firms in ICT appear to be innovative above the average and represent a significant share in the total business R&D expenditure.ConclusionsWe found a positive correlation between R&D expenditure and both value-added and apparent labour productivity in the ICT sector. We believe that this could be to some extent attributed to the innovation of products and processes. Hence, the government support in the form of R&D tax incentives can be also beneficial for the economic performance of ICT firms.

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ICT, R&D and Organizational Innovation: Exploring Complementarities in Investment and Production

Cited by 21 publications

References 34 publications

Investment in Knowledge‐Based Capital and Productivity: Firm‐Level Evidence from a Small Open Economy†

Investment in Knowledge‐Based Capital and Productivity: Firm‐Level Evidence from a Small Open Economy†

Analysis of the Determinants of Innovation in Developing Countries: A Vector Auto-regression Approach

R&D Investments in the European ICT sector: Implications for Business Performance

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