ICT, R&D and Organizational Innovation: Exploring Complementarities in Investment and Production

27 Pages Posted: 17 Sep 2018

See all articles by Pierre Mohnen

Pierre Mohnen

Maastricht University

Michael Polder

University of Maastricht

George Leeuwen

Statistics Netherlands

Date Written: September 2018

Abstract

This paper examines whether there are complementarities between investments in ICT, R&D and organizational innovation, and the effects of different investment profiles on total factor productivity growth on Dutch firm-level data. We estimate an integrated model of investment profile adoption and total factor productivity growth. We find that the three investment decisions are complementary, in the sense that investing in one increases the probability of investing in another one because joint investments lead to higher TFP growth than individual investments. ICT earns on average an expected rate of return of 9.7%, followed by 6% to 7% on organizational innovation and a modest 1.4% to 1.8% on R&D in services and manufacturing respectively.

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Suggested Citation

Mohnen, Pierre and Polder, Michael and Leeuwen, George, ICT, R&D and Organizational Innovation: Exploring Complementarities in Investment and Production (September 2018). NBER Working Paper No. w25044. Available at SSRN: https://ssrn.com/abstract=3250590

Pierre Mohnen (Contact Author)

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

Michael Polder

University of Maastricht ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

George Leeuwen

Statistics Netherlands

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