Unbundling Technology Adoption and TFP at the Firm Level: Do Intangibles Matter?

25 Pages Posted: 6 May 2015

See all articles by Michele Battisti

Michele Battisti

University of Palermo; Luiss Guido Carli University

Filippo Belloc

University of Siena - Department of Economics and Statistics

Massimo Del Gatto

CRENOS - Centre for North South Economic Research; 'Gabriele d'Annunzio' University of Chieti-Pescara - Faculty of Economics

Date Written: Summer 2015

Abstract

We use a panel of European firms to investigate the relationship between intangible assets and productivity. We distinguish between total factor productivity (tfp) and technology adoption, whereas standard estimations consider only a notion of productivity that conflates the two effects. Although we are unable to address simultaneity, we allow for the existence of multiple technologies within sectors through a mixture model approach. We find that intangible assets have nonnegligible effects that both push firms toward better technologies (technology adoption effects) and allow for more efficient exploitation of a given technology (tfp effects).

Suggested Citation

Battisti, Michele and Belloc, Filippo and Del Gatto, Massimo and Del Gatto, Massimo, Unbundling Technology Adoption and TFP at the Firm Level: Do Intangibles Matter? (Summer 2015). Journal of Economics & Management Strategy, Vol. 24, Issue 2, pp. 390-414, 2015, Available at SSRN: https://ssrn.com/abstract=2602991 or http://dx.doi.org/10.1111/jems.12094

Michele Battisti (Contact Author)

University of Palermo ( email )

Viale delle Scienza
Palermo, Palermo 90128
Italy

Luiss Guido Carli University ( email )

Via O. Tommasini 1
Rome, Roma 00100
Italy

Filippo Belloc

University of Siena - Department of Economics and Statistics ( email )

Piazza San Francesco 7
Siena, Siena 53100
Italy

Massimo Del Gatto

CRENOS - Centre for North South Economic Research ( email )

Cagliari
Italy

'Gabriele d'Annunzio' University of Chieti-Pescara - Faculty of Economics ( email )

Faculty of Economics - Department of Economics
Viale Pindaro, 42
Pescara, 65127
Italy

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