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Innovation and Growth$
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Martin Andersson, Börje Johansson, Charlie Karlsson, and Hans Lööf

Print publication date: 2012

Print ISBN-13: 9780199646685

Published to Oxford Scholarship Online: January 2013

DOI: 10.1093/acprof:oso/9780199646685.001.0001

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The Importance of Process and Product Innovation for Productivity in French Manufacturing and Service Industries

Chapter:
(p.128) 6 The Importance of Process and Product Innovation for Productivity in French Manufacturing and Service Industries
Source:
Innovation and Growth
Author(s):

Jacques Mairesse

Stephane Robin

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199646685.003.0007

This chapter examines 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. To control for selection and endogeneity effects, the chapter estimates a nonlinear multiple-equations econometric model. This model is estimated on the third and fourth waves of the French component of the Community Innovation Survey, using a three-step and a two-step estimation procedure. The chapter identifies process innovation as the main driver of labour productivity in the manufacturing industry, but the results are less consistent in the services industry. Sensitivity analyses actually suggest that our two indicators of innovations both tend simply to measure overall innovation. When a single indicator is used, the chapter finds a positive effect of innovation in all industries and in all periods. The chapter concludes with some cautionary words relating to the joint modelling of the impacts of product and process innovation on productivity.

Keywords:   R&D, product innovation, process innovation, knowledge production function, innovation and productivity

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