CEU Electronic Theses and Dissertations, 2017
| Author | Drul, Anastasiya |
|---|---|
| Title | The Productivity Effect Of Innovation: Evidence From Eastern Europe And Central Asia |
| Summary | This study addresses the importance of innovation in the production process and analyses its effect on firm performance. The research is conducted for Eastern European and Central Asian firms, using micro-level data that altogether covers three inconsecutive years (2001, 2004 and 2008). In order to empirically investigate the relationship between firm productivity, measured by firm’s total factor productivity (TFP), and innovation, proxied by four variables: amount of spending on R&D, dummy variables capturing an introduction of new products, investment in R&D and upgrade of an existing product during the last three years, FE procedure is used in Stage I estimation for two models, with Cobb-Douglas and translog production functions, respectively. Further, pooled OLS regressions for multiple model specifications are estimated in Stage II. Numbers of firm and industry characteristics that affect productivity are effectively controlled for. Final Stage II model specification suggests that there is a positive and statistically significant link between TFP and innovation spending, however economically marginal, while the innovation dummy for R&D activities over the last three years proves to have both statistically and economically significant positive effect on firm's productivity. |
| Supervisor | Reiff Adam |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2017/drul_anastasiya.pdf |
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