Template-type: ReDIF-Paper 1.0
Author-Name: Ugur, Mehmet
Author-Email: m.ugur@gre.ac.uk
Author-Workplace-Name: Institute of Political Economy, Governance, Finance and
	 Accountability, University of Greenwich
Author-Name: Vivarelli, Marco
Author-Email: vivarelli@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, Maastricht University, Department of Economic
	 Policy, Universita Cattolica del Sacro Cuore, and IZA, Bonn
Title: The role of innovation in industrial dynamics and productivity growth: a survey 
	 of the literature
Abstract: We review the theoretical underpinnings and the empirical findings of
	 the literature that investigates the effects of innovation on firm
	 survival and firm productivity, which constitute the two main channels
	 through which innovation drives growth. We aim to contribute to the
	 ongoing debate along three paths. First, we discuss the extent to which
	 the theoretical perspectives that inform the empirical models allow for
	 heterogeneity in the effects of R&D/innovation on firm survival and
	 productivity. Secondly, we draw attention to recent modelling and
	 estimation effort that reveals novel sources of heterogeneity,
	 non-linearity and volatility in the gains from R&D/innovation,
	 particularly in terms of its effects on firm survival and productivity.
	 Our third contribution is to link our findings with those from prior
	 reviews to demonstrate how the state of the art is evolving and with
	 what implications for future research.
Classification-JEL: O31, O32, O33, O40
Keywords: Innovation, R&D, Survival, Productivity
Series: UNU-MERIT Working Papers
Creation-Date: 20200903
Number: 2020-038
File-URL: https://unu-merit.nl/publications/wppdf/2020/wp2020-038.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2020038