Product market regulation and innovation efficiency

Franco, Chiara; Pieri, Fabio; Venturini, Francesco

doi:10.1007/s11123-015-0441-3

Cited by 39 publications

(25 citation statements)

References 69 publications

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“…29 This result is consistent with the findings for the US reported by Venturini (2012a) but inconsistent with international economy-wide or industry-level evidence reported by Ang (2011) and Franco et al (2013), among others.…”

Section: Permanent Effects On Growth Frameworkmentioning

confidence: 54%

R&D Policy and Schumpeterian Growth: Theory and Evidence

Minniti

Venturini

2014

SSRN Journal

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In recent years, a large body of empirical research has investigated whether the predictions of secondgeneration growth models are consistent with actual data. This strand of literature has focused on the longrun properties of these models by using productivity and innovation data but has not directly assessed the effectiveness of R&D policy in promoting innovation and economic growth. In the present paper, we fill this gap in the literature by providing a unified growth setting that is empirically tested with US manufacturing industry data. Our analysis shows that R&D policy has a persistent, if not permanent, impact on the rate of economic growth and that the economy rapidly adjusts to policy changes. The impact of R&D tax credits on economic growth appears to be long lasting and statistically robust. Conversely, more generous R&D subsidies are associated with an increase in the rate of economic growth in the short run only, indicating that, at best, this policy instrument has only temporary effects. Overall, the evidence regarding the effectiveness of R&D policy provides more support for fully endogenous growth theory than for semi-endogenous growth theory.

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Section: Permanent Effects On Growth Frameworkmentioning

confidence: 54%

R&D Policy and Schumpeterian Growth: Theory and Evidence

Minniti

Venturini

2014

SSRN Journal

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“…The studies of Rousseau (1997, 1998) and Franco et al (2016) are among the few attempts, which consider efficiency in innovation process. These studies evaluate innovation performance of a number of, mainly OECD, countries and rank them according to their efficiency scores.…”

Section: Resultsmentioning

confidence: 99%

“…By means of a two-stage non-parametric DEA approach, Cullmann et al (2012) study R&D efficiency differences among OECD countries focusing on the role of regulatory environment. A more recent study that of Franco et al (2016) examines cross-industry (cross-country) efficiency levels in knowledge production focusing on the role played by the institutional framework regulating the functioning of upstream markets, i.e. how regulation in upstream sectors (services) influences innovation efficiency of downstream (manufacturing) firms that purchase factor inputs from the former.…”

Section: Resultsmentioning

confidence: 99%

“…These studies evaluate innovation performance of a number of, mainly OECD, countries and rank them according to their efficiency scores. A number of subsequent studies, perform similar analysis controlling also for socio-economic factors, institutions, and regulations (Wang, 2007;Wang and Huang, 2007;Cullmann et al, 2012;Franco et al, 2016). 4 The literature, thus far, has studied separately the production of output and ideas and the possible waste in the use of their inputs.…”

Section: Introductionmentioning

confidence: 99%

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Production of output and ideas: efficiency and growth patterns in the United States

2017

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This paper examines efficiency and growth patterns in the production of output and ideas in the US. We employ frontier techniques and jointly estimate the production of output and the production of ideas. We find states to be particularly efficient in the use of their inputs in the production of output process, whereas there is more waste in the use of innovation resources to produce new knowledge. Our results do not lend support to the common perception that richer (more innovative) states are more efficient than less richer (less innovative) states for every dollar spent. Furthermore, an efficient in producing knowledge state is not necessarily efficient in producing goods and services. Finally, a consistent finding is that input accumulation is an important source of growth both for output and for the knowledge.

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“…See for example: (1) Allegra et al (), Forlani () and Arnold, Javorcik, and Mattoo () using single country data; (2) Barone and Cingano () using cross‐sectional data; (3) Conway et al () using country‐industry panel data (but these authors did not distinguish between the direct and indirect effects); and (4) Franco, Pieri, and Venturini () also using country‐industry panel data and focusing on innovation efficiency using a stochastic frontier analysis. The results of these papers are not directly comparable to Bourlès et al (), but are qualitatively consistent with them.…”

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confidence: 99%

Rent Creation and Rent Sharing: New Measures and Impacts on Total Factor Productivity

2019

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This analysis proposes new measures of rent creation and rent sharing and assesses their impact on productivity on cross‐country‐industry panel data. We find first that: (1) anticompetitive product market regulations positively affect rent creation and (2) employment protection legislation boosts hourly wages, particularly for low‐skill workers. However, we find no significant impact of this employment legislation on rent sharing, as the hourly wage increases are offset by a negative impact on hours worked. Second, using regulation indicators as instruments, we find that rent creation and rent sharing both have a substantial negative impact on total factor productivity. (JEL E22, E24, O30, L50, O43, O47, C23)

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Product market regulation and innovation efficiency

Cited by 39 publications

References 69 publications

R&D Policy and Schumpeterian Growth: Theory and Evidence

R&D Policy and Schumpeterian Growth: Theory and Evidence

Production of output and ideas: efficiency and growth patterns in the United States

Rent Creation and Rent Sharing: New Measures and Impacts on Total Factor Productivity

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