Determinants of Total Factor Productivity: Evidence from US Compustat Firms and Triadic Patent Families

International Journal of Economics and Business Research, 10(3), 258-272, 2015

23 Pages Posted: 30 Jun 2019 Last revised: 1 Jul 2019

See all articles by Eleftherios Giovanis

Eleftherios Giovanis

Manchester Metropolitan University-Department of Economics, Policy and International Business; Nazilli Faculty of Economics and Administrative Sciences

Oznur Ozdamar

Bologna University, Department of Economics

Date Written: September 25, 2015

Abstract

This study examines the determinants of total factor productivity (TFP) in US firms. Moreover, the firms' technology diversification and its effects on TFP is explored. This study uses the US Compustat database during the period 1976-2009. The overall results indicate that both firm and industry characteristics can be important factors for TFP. In addition, the determinants of TFP are examined during economic recession and economic growth periods. The results show the firms that their business activities are more related within similar technologies are able to report higher productivity, especially during economic recession periods. As such, firms can monitor productivity for strategic reasons such as corporate planning and organisation improvement. It can also be used for tactical reasons such as project control or controlling performance to budget.

Keywords: firm characteristics, industry characteristics, innovation knowledge, panel data, procyclical factors, countercyclical factors, relatedness measures, total factor productivity, TFP, USA, United States, triadic patents, technology diversification

JEL Classification: D22, D24

Suggested Citation

Giovanis, Eleftherios and Ozdamar, Oznur, Determinants of Total Factor Productivity: Evidence from US Compustat Firms and Triadic Patent Families (September 25, 2015). International Journal of Economics and Business Research, 10(3), 258-272, 2015. Available at SSRN: https://ssrn.com/abstract=3411592

Eleftherios Giovanis (Contact Author)

Manchester Metropolitan University-Department of Economics, Policy and International Business ( email )

Business School
All Saints Campus
Manchester, M15 6BH
United Kingdom

Nazilli Faculty of Economics and Administrative Sciences ( email )

Nazilli IIBF
Sumer Kampusu
Aydin, Nazilli 09800
Turkey

Oznur Ozdamar

Bologna University, Department of Economics ( email )

Strada Maggiore 45
Bologna, Kampus 40125
Italy

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