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Firm Size and Innovation in the Service Sector

  • A rich literature links knowledge inputs with innovative outputs. However, most of what is known is restricted to manufacturing. This paper analyzes whether the three aspects involving innovative activity - R&D; innovative output; and productivity - hold for knowledge intensive services. Combining the models of Crepon et al. (1998) and of Ackerberg et al. (2015), allows for causal interpretation of the relationship between innovation output and labor productivity. We find that knowledge intensive services benefit from innovation activities in the sense that these activities causally increase their labor productivity. Moreover, the firm size advantage found for manufacturing in previous studies nearly disappears for knowledge intensive services.

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Author:David B. AudretschGND, Marian Hafenstein, Alexander S. KritikosORCiDGND, Alexander SchierschORCiDGND
Parent Title (English):CEPA Discussion Papers
Series (Serial Number):CEPA Discussion Papers (4)
Document Type:Working Paper
Date of first Publication:2019/05/03
Year of Completion:2019
Publishing Institution:Universität Potsdam
Release Date:2019/05/03
Tag:Entrepreneurship; Innovation; MSMEs; Productivity; R&D; Service Sector
RVK - Regensburg Classification:QP 210, QC 120, QQ 250
Organizational units:Wirtschafts- und Sozialwissenschaftliche Fakultät / Wirtschaftswissenschaften
Zentrale und wissenschaftliche Einrichtungen / Center for Economic Policy Analysis (CEPA)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
JEL Classification:L Industrial Organization / L2 Firm Objectives, Organization, and Behavior / L25 Firm Performance: Size, Diversification, and Scope
L Industrial Organization / L6 Industry Studies: Manufacturing / L60 General
L Industrial Organization / L8 Industry Studies: Services / L80 General
O Economic Development, Technological Change, and Growth / O3 Technological Change; Research and Development / O31 Innovation and Invention: Processes and Incentives
O Economic Development, Technological Change, and Growth / O3 Technological Change; Research and Development / O33 Technological Change: Choices and Consequences; Diffusion Processes
Peer Review:Nicht referiert
Licence (German):License LogoKeine Nutzungslizenz vergeben - es gilt das deutsche Urheberrecht