Innovation and Productivity

Market Power and Duration of R&D Investment in a Panel of Italian Firms

“…Such variables turn out to be non-significant in most of considered specifications, apart firms' size in models (7). Consistently with the observation of Hall [2011], we argue that larger firms can diversify their activities and are therefore more likely to persist in R&D investment.…”

“…3 For instance, new markets show high entry and exit rates, often related to innovation races [Geroski, 1989], while consolidated markets where entry (exit) rates are near zero may be characterised by incremental innovations developed by incumbents [Banbury andMitchell, 1995, Gort andKlepper, 1982]. There is also evidence of distinct incentives to product vs. process innovation with respect to market power Coscollá-Girona et al [2011[ ], Hall [2011.…”

“…Schumpeter, and the literature that sprung from his work, argues that firms with greater market power have a higher incentive to innovate because they can better appropriate the returns of their R&D investment: intense market competition would imply lower post-entry rents [Hall, 2011], while low competitive pressure would reduce the risks associated with an innovative race. In fact, were the race lost, a firm would still enjoy oligopolistic profits.…”

Exploring Firm-Level Innovation and Productivity in Developing Countries: The Perspective of Caribbean Small States

“…One factor that has received much attention is innovation. Overall, empirical literature shows that innovation leads to higher productivity, especially product innovation, as evidenced in the empirical surveys of Hall (2011) and Hall and Mohnen (2013). Although innovation is crucial for productivity growth, the main channels for innovation improvements are still not fully evidenced in the literature.…”

The Link Between R&D, Innovation and Productivity: Are Micro Firms Different?

“…CDM models or variants of it are estimated (see Hall, 2011 for a survey), usually relying on CIS data, by Lööf and Heshmati (2002) for Sweden, Janz et al (2004) for Germany and Sweden, Griffith et al (2006) for Germany, Spain, the UK and France, Parisi et al (2006), Most of these approaches use R&D expenditures as a proxy for innovation input and assume the existence of simultaneity between R&D, innovation, and productivity. Although the magnitude of the effect of R&D on innovation differs across the studies, one consistent finding is that the likelihood of being an innovator is positively associated with the R&D intensity.…”