A sample of 18 papers and 32 data sets revealed 210,404 firm level observations about European firms making decisions about innovation. A total of 66,965 observations describe activities of innovators between 1986 and 2008. This paper used a basic literature review to assess properties of innovation among quite rare full CDM (Crépon, Duguet, and Mairesse) papers. This study compared results from two systems of estimation and showed that both international and regional comparisons are rather problematic because of different definitions of innovation variables and data set representativeness. On average, a typical firm that engaged in innovation was a large firm competing in international markets in the sample of firms with 20+ employees. Smaller firms, however, invested more in research and development (R&D) and no linear relationship was found for output characteristics. Cooperation on R&D projects increased overall innovation intensity. There is strong evidence that public funding had an ambiguous effect on R&D spending and no additional effect on innovation output on average. This output measured by sales from innovated goods and services was on average in a positive relationship with labour productivity; however, a detailed view suggested this effect was present only in product innovation. In this paper, it is shown that results of innovation studies cannot be compared or used in research without deeper analysis of the data sample (micro companies, industries, active firms, entrants etc.), dependent variable (innovator, R&D expenditures, sales, productivity, new product, new service etc.) and the baseline company that is defined by independent variables.
If the inline PDF is not rendering correctly, you can download the PDF file here.
ANDERSSON M. JOHANSSON B. KARLSSON C. & LÖÖF H. (2012). Innovation and Growth: From R&D Strategies of Innovating Firms to Economy-wide Technological Change. Oxford: Oxford University Press.
ARROW K. (1962). Economic Welfare and the Allocation of Resources for Invention. In: R. R. Nelson (ed.). The Rate and Direction of Inventive Activity: Economic and Social Factors. Princeton: Princeton University Press pp. 609–626.
BAREGHEH A. ROWLEY J. & SAMBROOK S. (2009). Towards a multidisciplinary definition of innovation. Management Decision. 47 (8). pp.1323–1339. DOI: http://doi.org/10.1108/00251740910984578
BROZEN Y. (1951). Invention Innovation and Imitation. The American Economic Review 41(2) 239–257.
CASTELLACCI F. (2011). How does competition affect the relationship between innovation and productivity? Estimation of a CDM model for Norway. Economics of Innovation and New Technology20(7) 637-658.
CLASSEN N. CARREE M. Van GILS A. & PETERS B. (2014). Innovation in family and non-family SMEs: an exploratory analysis. Small Business Economics42 (3) pp. 595-609. http://doi.org/10.1007/s11187-013-9490-z
COHEN W.M. NELSON R.R. & WALSH J.P. (2000). Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not). [Online]. National Bureau of Economic Research. Available from: http://www.nber.org/papers/w7552. [Accessed: 9 July 2012].
CRÉPON B. DUGUET E. & MAIRESSEC J. (1998). Research Innovation And Productivi [Ty: An Econometric Analysis At The Firm Level. Economics of Innovation and new Technology7(2) 115-158.
DAMIJAN J. P. KOSTEVC Č. & ROJEC M. (2011). Innovation and firms’ productivity growth in Slovenia: Sensitivity of results to sectoral heterogeneity and to estimation method (pp. 165-193). Berlin: Springer Berlin Heidelberg.
DAVID P.A. HALL B.H. & TOOLE A.A. (2000). Is public R&D a complement or substitute for private R&D? A review of the econometric evidence. Research Policy. 29 (4–5). pp.497–529. http://doi.org/10.1016/S0048-7333(99)00087-6
DORAN J. & O'LEARY E. (2011). External interaction innovation and productivity: an application of the innovation value chain to Ireland. Spatial Economic Analysis6 (2) pp. 199-222. http://doi.org/10.1080/17421772.2011.557777
EBERSBERGER B. & Lööf H. (2005). Innovation Behaviour and Productivity Performance in the Nordic Region Does Foreign Ownership Matter? [Online]. Royal Institute of Technology CESIS - Centre of Excellence for Science and Innovation Studies. Available from: http://econpapers.repec.org/paper/hhscesisp/0027.htm. [Accessed: 27 March 2012].
EFRON B. (1979). Bootstrap Methods: Another Look at the Jackknife. The Annals of Statistics. 7 (1). pp.1–26. http://doi.org/10.1214/aos/1176344552
ETTLIE J.E. & ROSENTHAL S.R. (2011). Service versus Manufacturing Innovation. Journal of Product Innovation Management. 28 (2). pp.285–299. http://doi.org/10.1111/j.1540-5885.2011.00797.x
FASSIO C. (2015). How Similar is Innovation in German Italian and Spanish Medium-Technology Sectors? Implications for the Sectoral Systems of Innovation and Distance-to-the-Frontier Perspectives. Industry and Innovation22 (2) pp. 102-125. http://doi.org/10.1080/13662716.2015.1033160
GILBERT R.J. (2006). Looking for Mr. Schumpeter: Where Are We in the Competition--Innovation Debate? Innovation Policy and the Economy. 6. pp.159–215.
GOULD W. (1995). Jackknife estimation. Stata Technical Bulletin. 4 (24). pp.25–29.
GREENHALGH C. & ROGERS M. (2009). Innovation Intellectual Property and Economic Growth. Princeton University Press.
GRIFFITH R. HUERGO E. MAIRESSE J. & PETERS B. (2006). Innovation and productivity across four European countries. Oxford review of economic policy22 (4) 483-498. http://doi.org/10.1093/oxrep/grj028
GRILICHES Z. (1964). Research Expenditures Education and the Aggregate Agricultural Production Function. The American Economic Review. 54 (6). pp.961–974.
HALL B. H. LOTTI F. & MAIRESSE J. (2009). Innovation and productivity in SMEs: empirical evidence for Italy. Small Business Economics33 (1) pp. 13-33. http://doi.org/10.1007/s11187-009-9184-8
HALL B.H. & MAIRESSE J. (2006). Empirical Studies of Innovation in the Knowledge Driven Economy. Economics of Innovation and New Technology 15 (4/5) 289–299. http://doi.org/10.1080/10438590500512760
HALL B.H. & Rosenberg N. (2010). Handbook of the Economics of Innovation Set. Berkeley: Elsevier Science.
HALPERN L. & MURAKÖZY B. (2012). Innovation productivity and exports: the case of Hungary. Economics of Innovation and New Technology21 (2) 151-173. http://doi.org/10.1080/10438599.2011.561995
HASHI I. & STOJČIĆ N. (2013). The impact of innovation activities on firm performance using a multi-stage model: Evidence from the Community Innovation Survey 4. Research Policy 42(2) 353–366. http://doi.org/10.1016/j.respol.2012.09.011
HECKMAN J.J. (1976). The Common Structure of Statistical Models of Truncation Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models. Annals of Economic and Social Measurement. 5 (4). pp.475–492.
JANZ N. LÖÖF H. & PETERS B. (2004). Firm Level Innovation and Productivity - Is There a Common Story Across Countries? Problems and Perspectives in Management. Vol. 2. pp.184–204.
KUZNETS S. (1955). Economic Growth and Income Inequality. The American Economic Review. 45 (1). pp.1–28.
LEVIN R.C. KLEVORICK A.K. NELSON R.R. WINTER S.G. GILBERT R. & GRILICHES Z. (1987). Appropriating the Returns from Industrial Research and Development. Brookings Papers on Economic Activity. 1987 (3). pp.783–831. http://doi.org/10.2307/2534454
LOKSHIN B. & MOHNEN P. (2010). How effective are level-based R&D tax credits? Evidence from the Netherlands. [Online]. United Nations University Maastricht Economic and social Research and training centre on Innovation and Technology. Available from: http://ideas.repec.org/p/dgr/unumer/2010040.html. [Accessed: 5 April 2012].
LÖÖF H. & Heshmati A. (2006). On the relationship between innovation and performance: A sensitivity analysis. Economics of Innovation and New Technology. 15 (4–5). pp.317–344. http://doi.org/10.1080/10438590500512810
MAIRESSE J. & MOHNEN P. (2002). Accounting for Innovation and Measuring Innovativeness: An Illustrative Framework and an Application. The American Economic Review. 92 (2). pp.226–230. http://doi.org/10.1257/000282802320189302
MAIRESSE J. & MOHNEN P. (2010). Chapter 26 - Using Innovation Surveys for Econometric Analysis. In: B. H. H. and N. ROSENBERG (ed.). Handbook of the Economics of Innovation. Handbook of the Economics of Innovation Volume 2. [Online]. North-Holland pp. 1129–1155. Available from: http://www.sciencedirect.com/science/article/pii/S0169721810020101. [Accessed: 1 June 2016].
MANSFIELD E. (1964). Industrial Research and Development Expenditures: Determinants Prospects and Relation to Size of Firm and Inventive Output. The Journal of Political Economy. 72 (4). pp.319–340.
MANSFIELD E. (1965). Rates of Return from Industrial Research and Development. The American Economic Review. 55 (1/2). pp.310–322.
MANSFIELD E. (1963). Size of Firm Market Structure and Innovation. The Journal of Political Economy. 71 (6). pp.556–576. http://doi.org/10.1086/258815
MASSO J. & VAHTER P. (2008). Technological innovation and productivity in late-transition Estonia: econometric evidence from innovation surveys. The European Journal of Development Research. 20 (2). pp.240–261. http://doi.org/10.1080/09578810802060751
Organisation for Economic Cooperation and Development. (2005). Oslo Manual. [Online]. Paris: Organisation for Economic Cooperation and Development. Retrieved from http://www.oecdilibrary.org/content/book/9789264013100-en. [Accessed: 26 March 2016]
Organisation for Economic Cooperation and Development. (2009). Innovation in Firms: A Microeconomic Perspective. [Online]. Paris: OECD Publishing. Retrieved from http://www.oecd-ilibrary.org/science-and-technology/innovation-in-firms_9789264056213-en. [Accessed: 26 March 2017]
POLDER M. LEEUWEN G. van MOHNEN P. & RAYMOND W. (2009). Productivity effects of innovation modes. [Online]. University Library of Munich Germany. Available from: http://ideas.repec.org/p/pra/mprapa/18893.html. [Accessed: 26 March 2016].
RAFFO J. LHUILLERY S. & MIOTTI L. (2008). Northern and southern innovativity: a comparison across European and Latin American countries. The European Journal of Development Research20 (2) pp. 219-239. http://doi.org/10.1080/09578810802060777
RAYMOND W. MAIRESSE J. MOHNEN P. & PALM F. (2015). Dynamic models of R & D innovation and productivity: Panel data evidence for Dutch and French manufacturing. European Economic Review78 pp. 285-306. http://doi.org/10.1016/j.euroecorev.2015.06.002
RAYMOND W. MOHNEN P. PALM F. & van der LOEFF S. S. (2006). A classification of Dutch manufacturing based on a model of innovation. De Economist154 (1) pp. 85-105. http://doi.org/10.1007/s10645-006-0005-z
ROUD V. (2007). Firm-level research on innovation and productivity: Russian experience. In: Proceeding from the Conference on Micro Evidence on Innovation in Developing Countries (MEIDE). Maastricht. Available from: [Accessed: 4 March 2016].
SCHMOOKLER J. (1959). Bigness Fewness and Research. Journal of Political Economy. 67 (6). pp.628–632. http://doi.org/10.1086/258251
SCHUMPETER J. (1934). The theory of economic development: an inquiry into profits capital credit interest and the business cycle. New Jersey: Transaction Publishers.
SOLOW R. (1964). Capital Labor and Income in Manufacturing. In: The Behavior Of Income Shares: Selected Theoretical and Empirical Issues. Studies in income and wealth. [Online]. Princeton: Princeton University Press pp. 101–142. Available from: http://www.nber.org/chapters/c1844. [Accessed: 29 March 2016].
Van BEVEREN I. (2012). Total Factor Productivity Estimation: A Practical Review. Journal of Economic Surveys. 26 (1). pp.98–128. http://doi.org/10.1111/j.1467-6419.2010.00631.x
VILLARD H. H. (1958). Competition Oligopoly and Research. Journal of Political Economy 66(6) 483–497. http://doi.org/10.1086/258101
VOCHOZKA M. STRAKOVÁ J. & VÁCHAL J. (2015). Model to Predict Survival of Transportation and Shipping Companies. Naše more. 62 (SI). pp.109–113.
VOKOUN M. (2014). R&D and Innovation Activities Search for Better Definitions and an Economic-Historical Approach. In Proceedings of Economics and Finance Conferences (No. 0402131). International Institute of Social and Economic Sciences.
VOKOUN M. (2016). Innovation behaviour of firms in a small open economy: the case of the Czech manufacturing industry. Empirica. 43 (1). pp.111–139. http://doi.org/10.1007/s10663-015-9296-0
ZELLNER A. & THEIL H. (1962). Three-Stage Least Squares: Simultaneous Estimation of Simultaneous Equations. Econometrica. 30 (1). pp.54–78. http://doi.org/10.2307/1911287