Productivity and innovation spillovers: Micro evidence from Spain

Esther Goya (), Esther Vayá () and Jordi Suriñach
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Esther Goya: Faculty of Economics, University of Barcelona
Esther Vayá: Faculty of Economics, University of Barcelona

No 201126, IREA Working Papers from University of Barcelona, Research Institute of Applied Economics

Abstract: This article analyses the impact that innovation expenditure and intrasectoral and intersectoral externalities have on productivity in Spanish firms. While there is an extensive literature analysing the relationship between innovation and productivity, in this particular area there are far fewer studies that examine the importance of sectoral externalities, especially with the focus on Spain. One novelty of the study, which covers the industrial and service sectors, is that we also consider jointly the technology level of the sector in which the firm operates and the firm size. The database used is the Technological Innovation Panel (PITEC), which includes 12,813 firms for the year 2008 and has been little used in this type of study. The estimation method used is Iteratively Reweighted Least Squares method (IRLS), which is very useful for obtaining robust estimations in the presence of outliers. The results confirm that innovation has a positive effect on productivity, especially in high-tech and large firms. The impact of externalities is more heterogeneous because, while intrasectoral externalities have a positive and significant effect, especially in low-tech firms independently of size, intersectoral externalities have a more ambiguous effect, being clearly significant for advanced industries in which size has a positive effect..

Keywords: Productivity; innovation; sectoral externalities; firm size. JEL classification:D24; O33 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2011-12, Revised 2011-12
New Economics Papers: this item is included in nep-cse, nep-eff, nep-eur, nep-ino, nep-sbm, nep-tid and nep-ure
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ira:wpaper:201126

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