Working Paper #2011-028
Innovation and productivity
What do we know about the relationship between innovation and
productivity among firms? The workhorse model of this relationship is
presented and the implications of analysis using this model and the
usually available data on product and process innovation are derived.
The recent empirical evidence on the relationship between innovation and
productivity in firms is then surveyed. The conclusion is that there are
substantial positive impacts of product innovation on revenue
productivity, but that the impact of process innovation is more
ambiguous, suggesting some market power on the part of the firms being
analyzed.
- Keywords
-
- innovation
- TFP
- revenue productivity
- cross-country
- JEL codes
-
- O30
- D20
- L20
Cite this as
APA 7th ed.Hall, B. (2011). Innovation and productivity (UNU-MERIT Working Paper No. 2011-028). UNU-MERIT. https://unu-merit.nl/publications/working-papers/abstract/?id=4426