Evidence on the Impact of R&D and ICT Investment on Innovation and Productivity in Italian Firms

52 Pages Posted: 2 Oct 2012

See all articles by Bronwyn H. Hall

Bronwyn H. Hall

University of California at Berkeley; National Bureau of Economic Research (NBER); Institute for Fiscal Studies (IFS); Max Planck Institute for Innovation and Competition

Francesca Lotti

Bank of Italy

Jacques Mairesse

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST); Maastricht University - United Nations and Maastricht Economic Research Institute on Innovation and Technology (UNU-MERIT); National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: July 26, 2012

Abstract

The paper investigates R&D and ICT investment at firm level, assessing their relative importance and the extent to which they are complements or substitutes. We use data on a large unbalanced panel sample from four consecutive waves of a survey of Italian manufacturing firms, together with a version of the model developed by Crepon et al., 1998, modified to include ICT investment and R&D as the two main inputs of innovation and productivity. We find that R&D and ICT are both strongly associated with innovation and productivity, with R&D being more important for innovation and ICT for productivity. We explore their possible complementarity in innovation and production but find none, although there is complementarity between R&D and worker skill in innovation.

Keywords: R&D, ICT, innovation, productivity, complementarity, Italy

JEL Classification: L60, O31, O33

Suggested Citation

Hall, Bronwyn H. and Lotti, Francesca and Mairesse, Jacques, Evidence on the Impact of R&D and ICT Investment on Innovation and Productivity in Italian Firms (July 26, 2012). Bank of Italy Temi di Discussione (Working Paper) No. 874, Available at SSRN: https://ssrn.com/abstract=2154959 or http://dx.doi.org/10.2139/ssrn.2154959

Bronwyn H. Hall

University of California at Berkeley ( email )

549 Evans Hall #3880
Berkeley, CA 94720-3880
United States

HOME PAGE: http://emlab.berkeley.edu/users/bhhall/index.html

National Bureau of Economic Research (NBER)

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Institute for Fiscal Studies (IFS)

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Max Planck Institute for Innovation and Competition

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Francesca Lotti (Contact Author)

Bank of Italy ( email )

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00184 Roma
Italy

Jacques Mairesse

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST) ( email )

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France

Maastricht University - United Nations and Maastricht Economic Research Institute on Innovation and Technology (UNU-MERIT)

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Netherlands

National Bureau of Economic Research (NBER)

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United States

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