PublicationArticle (with peer review)

Barriers to innovation and firm productivity

Abstract

The paper analyzes the effect of financial, knowledge, demand, market structure and regulation barriers to innovation on firms’ economic performance. It contributes to the literature on barriers to innovation by accounting for the heterogeneous effects that each barrier has on firms across the productivity distribution. We do so by employing both quantile regression techniques and matching estimators on this UK CIS panel 2002–2010 merged with the Business Structure Database. While we find evidence that both the cost and also the availability of finance negatively affect productivity across the whole distribution, the lack of qualified personnel mostly hinders high productivity firms. Moreover, quantile regression reveals some interesting variation in effect sizes across the (conditional) productivity distribution.

Coad, A., Pellegrino, G., Savona, M. (2016). Barriers to innovation and firm productivity. Economics of Innovation and New Technology, 25(3), 321-334. DOI: 10.1080/10438599.2015.1076193

Details

Author: Coad, A., Pellegrino, G., & Savona, M.
Publication year: 2016
Published in: Economics of Innovation and New Technology

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Alex Coad
+441273 877128alex.coad@waseda.jp

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