Chapter

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

Jacques Mairesse and Stephane Robin

in Innovation and Growth

Published in print September 2012 | ISBN: 9780199646685
Published online January 2013 | e-ISBN: 9780191748998 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199646685.003.0007
The Importance of Process and Product Innovation for Productivity in French Manufacturing and Service Industries

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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

Chapter.  12497 words. 

Subjects: Financial Markets

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