UNU-MERIT Working Papers Series
Product, process and organizational innovation: drivers, complementarity and productivity effects
Michael Polder, George van Leeuwen, Pierre Mohnen & Wladimir Raymond #2010-035We propose a model where both R&D and ICT investment feed into a system
of three innovation output equations (product, process and
organizational innovation), which ultimately feeds into a productivity
equation. We find that ICT investment and usage are important drivers of
innovation in both manufacturing and services. Doing more R&D has a
positive effect on product innovation in manufacturing. The strongest
productivity effects are derived from organizational innovation. We find
positive effects of product and process innovation when combined with an
organizational innovation. There is evidence that organizational
innovation is complementary to process innovation.
Keywords: Innovation, ICT, R&D, productivity
JEL codes: L25, O30-033
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