Discussion Paper 20

Organizational Trust, Organizational Fear and TFP Growth –

A Sectoral Analysis for the EU

 

Felix Roth

Centre for European Policy Studies, Place du Congrès 1, 1000 Brussels, Belgium

 

Abstract

Analyzing the sectoral variance in growth rates of total factor productivity in a European country sample from 1996 to 2006, this paper detects no significant relationship between organizational trust and TFP growth. Yet, the relationship between organizational fear and TFP growth seems to be significantly associated, in an inverted U-shaped relationship. This relationship proves to be robust to a range of alterations. The analysis concludes that depending on the specific sector, to enhance productivity it might be beneficial to liberalize or regulate employment relations. When analyzing the non-farm market sectors C-K, the relationship takes the form of a significant, negative linear relationship.

 

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Organizational Trust, Organizational Fear and TFP Growth – A Sectoral Analysis for the EU

 

Discussion Paper 17

Financial Constraints, Innovation Performance and Sectoral Disaggregation

Georgios Efthyvoulou1 and Priit Vahter2

1BIrmingham Business School, University of Birmingham, UK and University of Sheffield, UK

2BIrmingham Business School, University of Birmingham, UK, and University of Tartu, Estonia

 

Abstract

How do the effects of financial constraints on innovation performance vary by sector and firm characteristics? This paper uses innovation survey data from eleven European countries to examine the heterogeneity of these effects. So far, there has been a lack of cross-country micro-level studies exploring the effects of financial constraints on innovation performance in Western Europe and only little research about the variability of such effects between the broad sectors of production and market services. Our results suggest that the impact of direct measures of financial barriers differs in production and services sectors, and also by the firm’s export orientation. In particular, financial constraints appear to have more pronounced negative effects in the production sector than in the services sector. Among different types of firms, the response to financial constraints seems to be stronger for non-exporters.

 

Financial Constraints, Innovation Performance and Sectoral Disaggregation

 

NOTE:  This is an updated version of the paper previously entitled "Financial Constraints and Innovation Performance: Are all firms similar?"

Discussion Paper 16

IT Outsourcing - A Source of Innovation? - Microeconometric Evidence for Germany

Irene Bertschek and Daniel Erdsiek

ZEW Mannheim, ICT Research Group, University of Mannheim

 

Abstract

Does IT outsourcing (ITO) allow firms to redirect their resources on core activities? Are IT outsourcing firms more innovative than non-IT outsourcing firms? Do manufacturing firms behave differently from services firms? We attempt to answer these questions by analysing a firm-level data set comprising 1453 firms from the German manufacturing and services sectors. The econometric analysis shows that ITO plays a significant role for the product innovation activity of manufacturing firms. In the service sector, by contrast, ITO is important for process innovation.

 

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IT Outsourcing - A Source of Innovation? - Microeconometric Evidence for Germany

This paper of December 2012 replaces all previous versions

Discussion Paper 15

Internationalisation and the Innovation Activities of Services Firms

Iulia Siedschlaga,b, Neill Killeenc, Donal Smithc and Catriona O’Briend


a The Economic and Social Research Institute, Dublin
b Department of Economics, Trinity College, Dublin
c Central Bank of Ireland
d Central Statistical Office of Ireland

Abstract

This paper examines the relationship between the internationalisation of firms in services and their innovation performance. We use firm‐level data over the period 2004‐ 2006 and estimate an augmented structural model to account for the role of foreign direct investment and exporting on the innovation performance of services firms in Ireland. Our research shows that in comparison to firms serving only the Irish market, domestic exporters were more likely to engage in R&D and innovation and they were more likely to be successful in terms of innovation output, over and above firm characteristics such as size and distance to the technology frontier. Further, we find that  adoption of information and communication technologies was positively associated with innovation output.  Co‐operation with suppliers was positively associated with all innovation types, while knowledge flows from customers and from the government or public research institutes were positively linked to product innovation. Co‐operation with universities was positively linked to innovation measured by patents.

Full text

 

Internationalisation and the Innovation Activities of Services Firms

 

This paper forms part of the ESRI Working Papers Series, and can also be downloaded directly from the ESRI.

Discussion Paper 14

Productivity of ICT and Non-ICT Capital – The Role of Rates of Return and Capital Prices

Thomas Niebel and Marianne Saam

ZEW, Mannheim, Germany

Abstract

We investigate the role rates of return and rates of asset price decline play in explaining sources of productivity growth in the context of a growth accounting approach. Our analysis is based on data from the EU KLEMS database for seven countries in the period of 1990 − 2007. We introduce a constant rate of return to capital and a constant rate of ICT price decline across sectors, countries and time. The main result of this sensitivity analysis is that both alternative measurements somewhat downplay the role investment played relative to growth in multi-factor productivity in the UK and the US during 1995 − 2000. Moreover, we show that more than half of the ICT contribution to labor productivity growth results from growth in capital quality and composition rather than quantity.

 

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This paper forms part of the ZEW Discussion Paper series, and can be downloaded from ZEW here.

Policy Briefs

 

Policy Brief 1: EARLY HARVEST OF SERVICEGAP - The Impact of Service Sector Innovation and Internationalisation on Growth and Productivity

Introduction

There are lingering doubts about the dynamic features of market services in the EU. Whereas in manufacturing, European integration has stimulated cross-border activities, in market services such activities ('internationalisation') have remained far smaller in value. Moreover, in market services the extent of innovation and productivity growth are often regarded as worryingly low.

 

EARLY HARVEST OF SERVICEGAP - The Impact of Service Sector Innovation and Internationalisation on Growth and Productivity

 

Policy Brief 2:  The Impact of Service Sector Innovation and Internationalisation on Growth and Productivity

Introduction

The interaction between manufacturing and services has become more pronounced in recent decades. On the output side, manufacturing firms are increasingly offering services in combination with their products while on the input side firms purchase more and more services both from domestic sources and from abroad. Furthermore, there has been a strong increase in the share of service occupations in the manufacturing sector, showing a widespread shift in the production process towards service functions.

 

The Impact of Service Sector Innovation and Internationalisation on Growth and Productivity

Additional information