Stéphane Robin, PhD, Beta, University of Strasbourg 1,, University of Strasbourg 1,, Strasbourg, 67085, France and Jacques Mairesse, PhD, CREST-ENSAE and MERIT-UNU (Maastricht University) and NBER, 15 Boulevard Gabriel Peri,, Paris 92245 Malakoff Cedex, France.
This paper investigates the effect of innovation on labour productivity in France, using a general framework that accounts for research activities and for both product and process innovation. Using a variant of the model proposed by Griffith, Huergo, Peters and Mairesse (2006), we estimate a three stages econometric model, where the estimated output at a given stage is used as an input in the next stage. First, we control for selection into R&D activities and identify the determinants of R&D intensity using a Heckman-type procedure (Generalized Tobit model). Second, we estimate the “knowledge production function” using a bivariate Tobit model, distinguishing between product and process innovation. Finally, we estimate the impact of both types of innovation on labour productivity. This ‘structural’ model is estimated using two waves of the French component of the Community Innovation Survey (CIS): CIS3, which covers the 1998-2002 period, and CIS4, which covers the 2002-2004 period. A comparative analysis is conducted on the manufacturing industries using both waves of the survey, and a specific analysis is conducted on services using CIS4 only. Preliminary results show a significantly positive effect of product innovation and a significantly negative effect of process innovation on labour productivity in the manufacturing industry. This result holds for both observation periods. Moreover, the analysis conducted on services over the 2002-2004 period reveals a similar pattern.