Product, Process and Organizational Innovation: Drivers, Complementarity and Productivity Effects

44 Pages Posted: 18 Jun 2010

See all articles by Michael Polder

Michael Polder

University of Maastricht

George van Leeuwen

CPB Netherlands Bureau of Economic Policy Research

Pierre Mohnen

Maastricht University - UNU-MERIT

Wladimir Raymond

University of Maastricht

Date Written: June 18, 2010

Abstract

We propose a model where both R&D and ICT investment feed into a system of three innovation output equations (product, process and organizational innovation), which ultimately feeds into a productivity equation. We find that ICT investment and usage are important drivers of innovation in both manufacturing and services. Doing more R&D has a positive effect on product innovation in manufacturing. The strongest productivity effects are derived from organizational innovation. We find positive effects of product and process innovation when combined with an organizational innovation. There is evidence that organizational innovation is complementary to process innovation.

Keywords: Innovation, ICT, R&D, Productivity

JEL Classification: L25, O30, 033

Suggested Citation

Polder, Michael and Leeuwen, George van and Mohnen, Pierre and Raymond, Wladimir, Product, Process and Organizational Innovation: Drivers, Complementarity and Productivity Effects (June 18, 2010). CIRANO - Scientific Publications 2010s-28. Available at SSRN: https://ssrn.com/abstract=1626805 or http://dx.doi.org/10.2139/ssrn.1626805

Michael Polder

University of Maastricht ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

George van Leeuwen

CPB Netherlands Bureau of Economic Policy Research ( email )

P.O. Box 80510
2508 GM The Hague, 2585 JR
Netherlands

Pierre Mohnen

Maastricht University - UNU-MERIT ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands
31-43-3884464 (Phone)
31-43-3884495 (Fax)

Wladimir Raymond (Contact Author)

University of Maastricht ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

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