Template-type: ReDIF-Paper 1.0
Author-Name: Raymond, Wladimir
Author-Email: wladimir.raymond@statec.etat.lu 
Author-Workplace-Name: STATEC Luxemburg
Author-Name: Mairesse, Jacques 
Author-Email: mairesse@ensae.fr
Author-Workplace-Name: CREST-INSEE, UNU-MERIT, Maastricht University, and NBER
Author-Name: Mohnen, Pierre
Author-Email: mohnen@merit.unu.edu
Author-Workplace-Name: UNU-MERIT / MGSoG, SBE, Maastricht University, and CIRANO
Author-Name: Palm, Franz
Author-Email: f.palm@maastrichtuniversity.nl
Author-Workplace-Name: SBE, Maastricht University and CESifo
Title: Dynamic models of R&D, innovation and productivity: Panel data evidence for 
	 Dutch and French manufacturing
Abstract: This paper introduces dynamics in the R&D to innovation and innovation 
	 to productivity relationships, which have mostly been estimated on 
	 cross-sectional data. It considers four nonlinear dynamic simultaneous 
	 equations models that include individual effects and idiosyncratic 
	 errors correlated across equations and that differ in the way innovation 
	 enters the conditional mean of labour productivity: through an observed 
	 binary indicator, an observed intensity variable or through the 
	 continuous latent variables that correspond to the observed occurrence 
	 or intensity. It estimates these models by full information maximum 
	 likelihood using two unbalanced panels of Dutch and French manufacturing 
	 firms from three waves of the Community Innovation Survey. The results 
	 provide evidence of robust unidirectional causality from innovation to 
	 productivity and of stronger persistence in productivity than in 
	 innovation.   
Classification-JEL: C33, C34, C35, L60, O31, O32
Keywords: R&D, innovation, productivity, panel data, dynamics, simultaneous equations
Series: UNU-MERIT Working Papers
Creation-Date: 2013
Number: 025
File-URL: http://www.merit.unu.edu/publications/wppdf/2013/wp2013-025.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2013025