The role of innovation in industrial dynamics and productivity growth: a survey of the literature

Mehmet Ugur () and Marco Vivarelli ()

No 2020-038, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)

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.

Keywords: Innovation; R&D; Survival; Productivity (search for similar items in EconPapers)
JEL-codes: O31 O32 O33 O40 (search for similar items in EconPapers)
Date: 2020-09-03
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ent, nep-ino, nep-sbm and nep-tid
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Working Paper: The role of innovation in industrial dynamics and productivity growth: a survey of the literature (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:unm:unumer:2020038

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