Template-type: ReDif-Paper 1.0
Author-Name: Raymond W. 
Author-Name: Mairesse J. 
Author-Name: Mohnen P. 
Author-Name: Palm F.C. 
Author-workplace-name: UNU-MERIT
Title: Dynamic models of R&D, innovation and productivity : panel data evidence for Dutch and French manufacturing
Abstract: This paper introduces dynamics in the RD 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 labor 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 twounbalanced 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.
Keywords: Models with Panel Data, Longitudinal Data, Spatial Time Series, Truncated and Censored Models, Switching Regression Models, Discrete Regression and Qualitative Choice Models, Discrete Regressors, Proportions, Manufacturing, Processes and Incentives, Management of Technological Innovation and R&D 
Classification-JEL: C33, C34, C35, L60, O31, O32
Series: UNU-MERIT Working Papers
Creation-Date: 2013
Number: 2013-025
File-URL: https://unu-merit.nl/publications/wppdf/2013/wp2013-025.pdf
File-Format: application/pdf
File-Size: 369609
Handle: RePEc:unm:unumer:2013025