Modelling the joint impact of R&D and ICT on productivity: A frontier analysis approach

Abstract

An open access repository of Middlesex University research http://eprints.mdx.ac.uk Pieri, Fabio, Vecchi, Michela and Venturini, Francesco (2017) Modelling the joint impact of R&D and ICT on productivity: a frontier analysis approach. Working Paper. Universita' degli Studi di Trento. Published version (with publisher's formatting)This version is available at: http://eprints.mdx.ac.uk/23043/ Copyright:Middlesex University Research Repository makes the University's research available electronically.Copyright and moral rights to this work are retained by the author and/or other copyright owners unless otherwise stated. The work is supplied on the understanding that any use for commercial gain is strictly forbidden. A copy may be downloaded for personal, non-commercial, research or study without prior permission and without charge.Works, including theses and research projects, may not be reproduced in any format or medium, or extensive quotations taken from them, or their content changed in any way, without first obtaining permission in writing from the copyright holder(s). They may not be sold or exploited commercially in any format or medium without the prior written permission of the copyright holder(s).Full bibliographic details must be given when referring to, or quoting from full items including the author's name, the title of the work, publication details where relevant (place, publisher, date), pagination, and for theses or dissertations the awarding institution, the degree type awarded, and the date of the award.If you believe that any material held in the repository infringes copyright law, please contact the Repository Team at Middlesex University via the following email address:eprints@mdx.ac.ukThe item will be removed from the repository while any claim is being investigated. Guidelines for authorsPapers may be written in Italian or in English. Faculty members of the Department must submit to one of the editors in pdf format. Management papers should be submitted to R. Gabriele. Economics Papers should be submitted to L. Andreozzi. External members should indicate an internal faculty member that acts as a referee of the paper.Typesetting rules: 1. papers must contain a first page with title, authors with emails and affiliations, abstract, keywords and codes. Page numbering starts from the first page; 2. a template is available upon request from the managing editors. AbstractThis study explores the channels through which technological investments affect productivity performance of industrialized economies. Using a Stochastic Frontier Model (SFM) we estimate the productivity effects of R&D and ICT for a large sample of OECD industries between 1973 and 2007, identifying four channels of transmission: input accumulation, technological change, technical efficiency and spillovers. Our results show that ICT has been particularly effective in reducing production inefficiency and in generating inter-industry spillovers, while R&D has raised the rate of technical change and favoured knowledge spillovers within...

Total factor productivity, its components and drivers

“…Kuusi (2015), following a theoretical exposition, establishes a leader-follower relationship between US and EU-15 (using DEA techniques). Pieri, Vecchi and Venturini (2017) find that ICT has been effective in reducing inefficiency and in generating inter-industry spillovers (using a translog stochastic frontier). Summarizing, the recent literature offers some evidence why especially backward industries could benefit from importing ICT capital and thereby implicitly from foreign know how.…”

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

“…It was proven that R&D investment has a positive impact of economic growth (Akcali & Sismanoglu, 2015;Falk, 2007;Gumus & Celikay, 2015;Huňady & Orviská, 2014) and productivity (Blanco et al, 2015;Nekrep et al, 2018) on a national level. Moreover, studies examining the impact of R&D expenditure spent by a firm were proven to have a positive effect on productivity on firm-level (Pieri et al, 2018). It has also been shown that R&D investment has positive effect on financial performance of a firm, such as on its profitability measured by either ROA or ROE ( (Park et al, 2018) or value-added (Tsang et al, 2008).…”

“…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).…”

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

“…Chen, Niebel and Saam (2014) and Corrado, Haskel and Jona-Lasinio (2017) find evidence of a positive direct effect of ICT on TFP, as well as a significant indirect effect through its interaction with intangibles. Using EUKLEMS data, Pieri, Vecchi and Venturini (2017) explore complementarities between ICT and R&D in reducing technical inefficiencies.…”