SSE/EFI Working Paper Series in Economics and Finance
On the Relationship between Innovation and Performance: A sensitivity Analysis
() and Almas Heshmati
Abstract: The objective of this study is to investigate the
sensitivity of the estimated relationship between innovation and firm
performance. In doing so, we rely on a knowledge production function
approach and carry out comparisons in a number of respects. The sensitivity
analysis is based on the comparison of a basic econometric model with
different alternative models using the same data sources, an identical
model but different data sources, different classifications of firm
performance and different classifications of innovation. The analyses are
performed in both level and growth rate dimensions. The overall picture
gives indications of what factors cause variations in the estimated effects
of interest and the direction of changes.
Keywords: Knowledge capital; productivity; innovation; manufacturing; services; knowledge intensity; Community Innovation Survey; (follow links to similar papers)
JEL-Codes: C24; C31; L60; O31; O32; (follow links to similar papers)
42 pages, May 17, 2001, Revised October 1, 2001
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- This paper is forthcoming as:
Lööf, Hans and Almas Heshmati, 'On the Relationship between Innovation and Performance: A sensitivity Analysis', Economics of Innovation and New Technology.
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