Scandinavian Working Papers in Economics
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CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology KTH/CESIS Working Paper Series in Economics and Institutions of Innovation

No 1:
A Comparative Perspective on Innovation and Productivity in Manufacturing and Services

Hans Lööf ()

Abstract: This paper serves as another complementary link in a chain of a rather limited number of investigations in the R&D-innovation-productivity relationship within service industries. Innovation has been found to be a major contributor to productivity growth in manufacturing. In this paper, the importance of innovation is explored by comparing manufacturing and service firms in a sample of knowledge intensive industries. In particular we intend to find evidence on the following two issues. First, is there any evidence that the reported weak rate of productivity growth in knowledge intensive services can be explained by a low propensity to be innovative? Second, is it possible that knowledge intensive service firms are less efficient in deriving benefits from innovation than knowledge intensive manufacturing firms? Empirical results based on innovation survey data indicate a surprising similarity in innovation performance between the two categories of firms.

Keywords: Productivity; Innovation; Manufacturing; Services; Applied Econometrics; (follow links to similar papers)

JEL-Codes: C31; D24; L60; L80; O31; (follow links to similar papers)

28 pages, January 28, 2004


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This paper is published as:
Lööf, Hans, (2004), A Comparative Perspective on Innovation and Productivity in Manufacturing and Services, Vol. 1, Entreprepeurship, the New Economy and Public Policy, Schumpetrian Perspectives., Springer, ISBN 3-540-22613-3.
Lööf, Hans, (2004), 'A Comparative Perspective on Innovation and Productivity in Manufacturing and Services' in Cantner, Uwe, Elias Dinopoulos and Robert F Lanzillotti (eds.) Entrepreneurship, the New Economy and Public Policy, Scumpeterian Perspectives. Editors Uwe Cantner, Elias Dinopoulos and Robert F. Lanzilotti, chapter 10, pages 181-202, Springer Berlin Heidelberg New York, ISBN 3-540-22613-3.

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