Innovation Strategy And Total Factor Productivity Growth

Topics:
Efficiency
Tags:
Business Operations,
Innovation,
R&D,
Research & Development,
Strategy,
Total Factor Productivity
Source:
Catholic University of Louvain

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Overview: This paper investigates the relationship between firms' innovation practices and performance in Taiwan. Using a panel of 4000 firms, the effects of importing technology (versus doing R&D) were examined on Total Factor Productivity (TFP) growth. The relationship between these two innovation strategies is also explored. It is found that R&D strongly contributes to the growth of TFP, whereas the importation of technology has no significant effect. However, the interaction effect of R&D (Research & Development) and the importation of technology is only weakly significant, which makes it difficult to qualify the type of relationship (complementarity or substitutability) that exists between the two innovation strategies.

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Format: PDF | Size: 391KB | Date: Mar 2004 | Pages: 25

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