nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2011‒09‒05
two papers chosen by
Laura Stefanescu
European Research Centre of Managerial Studies in Business Administration

  1. The Link between Innovation and Productivity in Estonia’s Service Sectors By Priit Vahter; Jaan Masso
  2. Learning By Exporting: Evidence Based on Data of Knowledge Flows from Innovation Surveys in Estonia By Priit Vahter

  1. By: Priit Vahter; Jaan Masso
    Abstract: The emerging literature on the characteristics of innovation processes in the service sector has paid relatively little attention to the links between innovation and productivity. In this paper we investigate how the innovation-productivity relationship differs across various subbranches of the service sector. For the analysis we use the CDM structural model consisting of equations for innovation expenditures, innovation output, productivity and exports. We use data from the community innovation surveys for Estonia. We show that innovation is associated with increased productivity in the service sector. The results indicate surprisingly that the effect of innovation on productivity is stronger in the less knowledge-intensive service sectors, despite the lower frequency of innovative activities and the results of earlier literature. Non-technological innovation only plays a positive role in some specifications, despite its expected importance especially among the service firms. An additional positive channel of the effects of innovation on productivity may function through increased exports.
    Keywords: innovation, services, productivity
    JEL: O31 O33 L80
    Date: 2011–03–01
    URL: http://d.repec.org/n?u=RePEc:wdi:papers:2010-1012&r=knm
  2. By: Priit Vahter
    Abstract: This paper studies learning-by-exporting, based on survey data of knowledge flow indicators. Most of the earlier related papers investigate the effects of exporting on productivity of firms, and often find little evidence of learning effects. This study looks more in detail into the mechanism of these effects. It investigates whether exporting is associated with increase in intensity of knowledge flows to the firm from the firm’s clients, relative to other knowledge sources. I use measures of learning about the new technologies from two pooled innovation surveys and firm level exporting data of manufacturing firms in Estonia. Unlike the majority of earlier studies that use productivity data, I find evidence consistent with learning-by-exporting. Exporting in the past is associated with more learning from the firm’s clients in next periods.
    Keywords: exporting, learning, knowledge transfer, Central and Eastern Europe
    JEL: F12 L1
    Date: 2011–02–01
    URL: http://d.repec.org/n?u=RePEc:wdi:papers:2010-1011&r=knm

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