Chapter x - Therrien-Hanel FINAL EN

International Productivity …, 2001

Canada=s economic performance in the 1990's lagged far behind that of the U.S. B real incomes in Canada are currently about 30 percent below those in the U.S.. Although Canada has achieved a 10% annual growth in nominal merchandise exports over the1990's (from $152.1 billion in 1990 to $360.0 billion in 1999), this has been due largely to a buoyant U.S. economy and the real depreciation of the Canadian dollar. However, we cannot rely on the weak dollar and the strong US economy to improve the living standards and quality of life of Canadians. On the contrary, the depreciating currency may actually erode the living standards of Canadians. The reality is that 90% of the income gap between Canada and the U.S. is due to the productivity gap. Therefore, only superior productivity performance 3 will improve Canada=s international cost competitiveness on a sustained basis, raise the standard of living and close the real income gap between Canada and the U.S..

SSRN Electronic Journal, 2000

Using the model recently developed by Jaumandreu (2003) this paper reports new results on the relationship between innovation and employment growth in Germany. The model is tailor-made for analysing firm-level employment effects of innovations using specific information provided by CIS data. It establishes a theoretical link between employment growth and innovation output. The econometric analysis confirms that product innovations have a positive impact on employment. In contrast to previous studies, this effect is independent of the novelty degree. Moreover, different employment effects between manufacturing and service firms regarding process innovations were found. Finally, from a cross country perspective the results for Germany are similar to those found for Spain and the UK.

Annales d'Économie et de Statistique, 2005

this paper consists in a detailed robustness investigation of the crépon, duguet and mairesse [1998] (cdm) econometric framework, which encompasses as a reduced form equation the production function extended to R&d, as pioneered by Zvi Griliches. We focus on the sensitivity of the estimated productivity elasticities of innovation and R&d, with respect to different model specifications and estimation methods, and to the different innovation output quantitative and qualitative indicators available in the 1998-2000 French community innovation survey. the main conclusion we draw is that as long as we properly correct for endogeneity and also, when appropriate, for selectivity, we find again estimates of the productivity elasticities of R&d and of the corresponding median rates of return to R&d, which are close to the usual estimates from the extended cobb-douglas production function. We interpret the need to instrument innovation and R&d as revealing important measurement errors in the innovation intensity variables, as well as but to a lesser extent in the innovation binary indicators, the R&d intensity variable and binary indicator. although innovation surveys unveil interesting information and the cdm model is a good framework, which can both be used to advance our understanding of the firm R&d and innovation activities and performances, much more remains to be done to improve the quality of the data and relevance of the analysis. L'importance de la R&D et de l'innovation pour la productivité : un réexamen à la lumière de l'enquête française sur l'innovation RÉSUMÉ.-cet article présente une examen détaillé de la robustesse du cadre d'analyse économétrique du modèle 'cdm' de crépon, duguet et mairesse [1998], dont la fonction de production étendue à la R&d, telle que Zvi Griliches l'a développée, est une des équations sous forme réduite. nous analysons précisément la sensibilité des estimations de l'élasticité de la productivité des entreprises à l'innovation et à la R&d, en fonction des choix de spécification du modèle et de méthode d'estimation, ainsi que les différents indicateurs d'innovation quantitatifs et qualitatifs disponibles dans l'enquête communautaire française sur l'innovation. notre principale conclusion est qu'à condition de corriger les biais d'endogeneité, et le cas échéant ceux aussi de sélection, nous trouvons des estimations de l'élasticité de la production à la R&d et des taux médians de rendements de R&d, qui sont proches des estimations habituelles de la fonction cobb-douglas de production étendue. nous interprétons la nécessité d'instrumenter pour tenir compte de l'endogeneité comme la conséquence d'importantes erreurs de mesure sur les variables d'intensité d'innovation, et à un moindre degré sur les indicateurs dichotomiques d'innovation et sur l'intensité et l'indicateur dichotomique de R&d. Bien que les enquêtes sur l'innovation apportent une information très utile et que le modèle cdm soit un bon cadre d'analyse, qui l'un et l'autre contribuent à une meilleure connaissance des activités et performances des entreprises en matière de R&d et d'innovation, beaucoup de progrès restent à faire pour améliorer la qualité des données et la pertinence des analyses. We are grateful to sessi for access to the cis 3 and eae data for French manufacturing under strict confidentiality requirements. We are particularly indebted to Bronwyn H. Hall for comments and support. * J. mairesse : cRest-ensae (Paris, France); unu-meRit (maastricht university, netherlands) and nBeR (cambridge, mass.).

2010

this paper consists in a detailed robustness investigation of the crépon, duguet and mairesse [1998] (cdm) econometric framework, which encompasses as a reduced form equation the production function extended to R&d, as pioneered by Zvi Griliches. We focus on the sensitivity of the estimated productivity elasticities of innovation and R&d, with respect to different model specifications and estimation methods, and to the different innovation output quantitative and qualitative indicators available in the 1998-2000 French community innovation survey. the main conclusion we draw is that as long as we properly correct for endogeneity and also, when appropriate, for selectivity, we find again estimates of the productivity elasticities of R&d and of the corresponding median rates of return to R&d, which are close to the usual estimates from the extended cobb-douglas production function. We interpret the need to instrument innovation and R&d as revealing important measurement errors in the innovation intensity variables, as well as but to a lesser extent in the innovation binary indicators, the R&d intensity variable and binary indicator. although innovation surveys unveil interesting information and the cdm model is a good framework, which can both be used to advance our understanding of the firm R&d and innovation activities and performances, much more remains to be done to improve the quality of the data and relevance of the analysis. L'importance de la R&D et de l'innovation pour la productivité : un réexamen à la lumière de l'enquête française sur l'innovation RÉSUMÉ.-cet article présente une examen détaillé de la robustesse du cadre d'analyse économétrique du modèle 'cdm' de crépon, duguet et mairesse [1998], dont la fonction de production étendue à la R&d, telle que Zvi Griliches l'a développée, est une des équations sous forme réduite. nous analysons précisément la sensibilité des estimations de l'élasticité de la productivité des entreprises à l'innovation et à la R&d, en fonction des choix de spécification du modèle et de méthode d'estimation, ainsi que les différents indicateurs d'innovation quantitatifs et qualitatifs disponibles dans l'enquête communautaire française sur l'innovation. notre principale conclusion est qu'à condition de corriger les biais d'endogeneité, et le cas échéant ceux aussi de sélection, nous trouvons des estimations de l'élasticité de la production à la R&d et des taux médians de rendements de R&d, qui sont proches des estimations habituelles de la fonction cobb-douglas de production étendue. nous interprétons la nécessité d'instrumenter pour tenir compte de l'endogeneité comme la conséquence d'importantes erreurs de mesure sur les variables d'intensité d'innovation, et à un moindre degré sur les indicateurs dichotomiques d'innovation et sur l'intensité et l'indicateur dichotomique de R&d. Bien que les enquêtes sur l'innovation apportent une information très utile et que le modèle cdm soit un bon cadre d'analyse, qui l'un et l'autre contribuent à une meilleure connaissance des activités et performances des entreprises en matière de R&d et d'innovation, beaucoup de progrès restent à faire pour améliorer la qualité des données et la pertinence des analyses. We are grateful to sessi for access to the cis 3 and eae data for French manufacturing under strict confidentiality requirements. We are particularly indebted to Bronwyn H. Hall for comments and support. * J. mairesse : cRest-ensae (Paris, France); unu-meRit (maastricht university, netherlands) and nBeR (cambridge, mass.).

SSRN Electronic Journal, 2000

The issue of technological unemployment receives perennial popular attention. Although there are previous empirical investigations that have focused on the relationship between innovation and employment, the originality of our approach lies in our choice of method. We focus on four 2-digit manufacturing industries that are known for their high patenting activity. We then use Principal Components Analysis to generate a firm-and year-specific 'innovativeness' index by extracting the common variance in a firm's patenting and R&D expenditure histories. To begin with, we explore the heterogeneity of firms by using semi-parametric quantile regression. Whilst some firms may reduce employment levels after innovating, others increase employment. We then move on to a weighted least squares (WLS) analysis, which explicitly takes into account the different job-creating potential of firms of different sizes. As a result, we focus on the effect of innovation on total number of jobs, whereas previous studies have focused on the effect of innovation on firm behavior. Indeed, previous studies have typically taken the firm as the unit of analysis, implicitly weighting each firm equally according to the principle of 'one firm equals one observation'. Our results suggest that firm-level innovative activity leads to employment creation that may have been underestimated in previous studies.

2012

Are more competitive industries more innovative? Empirical investigation into various theories of innovation in industrial organization, agency theory, or endogenous growth, make diverse predictions with respect to this long-standing open question in economics. In this paper, we investigate the empirical relationship between competition intensity and firm innovation using a new micro-database containing a large sample of Canadian manufacturing enterprises over the 2000-05 period. Using three different measures of competition intensity, we find evidence that competition intensity is positively related to firm-level expenditures on research and development (R&D) in Canadian manufacturing industries. However, we also find that this relationship is dampened when more firms are further from the technological frontier of their industry. Nevertheless, the results provide evidence for a Schumpeterian interpretation, whereby market power can increase business incentives for innovation when many firms are technological laggards.

2010

a b s t r a c t Jel Classification: D21 F23 L25 O32

2013

It is well known that exporters are productive firms. But the source of their productivity is left unexplained. This paper aims to endogenize the productivity heterogeneity of exporting firms by incorporating innovation in a structural model framework. In doing so, we close the gap between the innovation-productivity and productivity-export literature. Two waves of Swedish Community Innovation Survey (CIS) are merged. This allows for a dynamic setup that takes into account the proper lags from innovation input to innovation output and also from innovation output to productivity and export. The applied framework corrects for selectivity, simultaneity, and potential endogeneity biases. The main findings highlight that exporters are productive firms with innovation output in the past, which in turn was driven by prior R&D and other innovation activity investments.

2008

This paper investigates the effect of innovation on labour productivity in France, using a general framework that accounts for research activities and for both product and process innovation. Using a variant of the model proposed by Griffith, Huergo, Peters and Mairesse (2006), we estimate a three stages econometric model, where the estimated output at a given stage is used as an input in the next stage. First, we control for selection into R&D activities and identify the determinants of R&D intensity using a Heckman-type procedure (Generalized Tobit model). Second, we estimate the “knowledge production function” using a bivariate Probit model, distinguishing between product and process innovation. Finally, we estimate the impact of both types of innovation on labour productivity.