Ratio Working Papers
A Generalized Knowledge Production Function
Abstract: This paper presents a generalized production model based
on the knowledge production function. The model allows the relationships
between corporate competitiveness strategy, innovation, efficiency,
productivity growth and outsourcing to be investigated at the firm level in
a number of steps. First, in reviewing recent developments of researches on
the above relationships, provide discussion on data and the methods of
measuring these variables. Second, depending on availability of
information, different measures are transferred into single
multidimensional index of corporate strategy using principal component
analysis. Third, stochastic frontier production function and factor
productivity analysis are used to estimate the efficiency and factor
productivity growth at the firm level. Fourth, the causal relationships
between the five variables of interest are established and modelled.
Finally, given the direction of causality, the implications of the findings
for estimation of the relationship are discussed. For the empirical
analysis we use Swedish firm-level innovation survey data covering both
manufacturing and service sectors.
Keywords: Competition; innovation; outsourcing; productivity; efficiency; causality; firm; (follow links to similar papers)
JEL-Codes: C31; C52; D24; L10; L60; L80; O31; (follow links to similar papers)
31 pages, April 25, 2006
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