nep-ino New Economics Papers
on Innovation
Issue of 2009‒05‒09
three papers chosen by
Steffen Lippert
Massey University Department of Commerce
  1. Innovation and Exporting: Edvidence from Spanish Manufacturing Firms By Aida Caldera
  2. A Theory of Total Factor Productivity and the Convergence Hypothesis: Workers’ Innovations as an Essential Element By Harashima, Taiji
  3. Meritocracy and Innovation: Is There a Link? Empirical Evidence from Firms in Brazil By Barros, Henrique M.; Lazzarini, Sergio G.
  1. By: Aida Caldera
    Abstract: This paper investigates the relationship between innovation and the export behavior of firms using data from a representative panel of Spanish firms over 1991-2002. It presents a simple theoretical model of the firm decision to export and innovate that guides the econometric analysis. Consistent with the predictions of the theoretical model, the econometric results suggest a positive effect of firm innovation on the probability of participation in export markets. The results further reveal the heterogeneous effects of different types of innovations on the firm export participation. In particular, product upgrading appears to have a larger effect on the firm export participation than the introduction of cost-saving innovations. These findings are robust to alternative regression techniques to control for firm unobserved heterogeneity, to dynamic specifications and to the use of instrumental variables regressions to control for the potential endogeneity between innovation and exporting.
    Keywords: Firm data, innovation, trade.
    JEL: F10
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:eca:wpaper:2009_014&r=ino
  2. By: Harashima, Taiji
    Abstract: A theory of total factor productivity (TFP) is needed to explain why substantial differences in international income have been observed. This paper presents a theory of TFP that incorporates workers’ innovations. Because workers are human and capable of creative intellectual activities, they can create innovations even if these innovations are minor. The creative activities of ordinary workers have been almost entirely neglected in economics even though the importance of workers’ learning activities has been emphasized by the theories of learning-by-doing and human capital. I examine this creative element and show that innovations created by ordinary workers are indispensable for efficient production. A production function incorporating workers’ innovations is shown to have a Cobb-Douglas functional form with a labor share of about 70%. The production function offers a microfoundation of the Cobb-Douglas production function and more importantly indicates that heterogeneous parameter values with regard to workers’ innovations are essential factors of the currently observed substantial income difference across economies.
    Keywords: Innovation: Total factor productivity; Experience curve effect; Convergence hypothesis; Cobb-Douglas production function
    JEL: O11 E23 J24 D24 O31 O14
    Date: 2009–05–02
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:14978&r=ino
  3. By: Barros, Henrique M.; Lazzarini, Sergio G.
    Date: 2009–10
    URL: http://d.repec.org/n?u=RePEc:ibm:ibmecp:wpe_160&r=ino
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