Don't stop me now: barriers to innovation and firm productivity

Coad, Alex, Pellegrino, Gabriele and Savona, Maria (2014) Don't stop me now: barriers to innovation and firm productivity. Working Paper. University of Sussex, Brighton, Sussex.

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Abstract

This paper analyses the effect of financial, knowledge, demand, market structure and regulation barriers to innovation on firm's economic performance. It contributes to the literature on barriers to innovation in a two-fold way. First, it distentangles the mediated effect of obstacles, via product, process and organisational innovation, on labour productivity. Second, it accounts for the differentiated effect that each of the barriers has on firms positioned along the productivity distribution. We do so by employing both quantile regression techniques and propensity score matching on the UK CIS panel 2002-2010 merged with the Business Structure database. While we find evidence that financial obstacles negatively affect productivity across the distribution, and are more pronounced for young rather than small firms, knowledge and regulatory obstacles mostly affect high productivity firms. Interestingly, the perceptions of market structure and demand obstacles are positively associated to productivity performance confirming their 'revealed' rather than 'deterring' nature.

Item Type: Reports and working papers (Working Paper)
Additional Information: SWPS 2014-04
Schools and Departments: School of Business, Management and Economics > SPRU - Science Policy Research Unit > SPRU Working Paper Series
Subjects: H Social Sciences
Depositing User: Jill Kirby
Date Deposited: 14 Jul 2014 10:34
Last Modified: 14 Jul 2014 14:12
URI: http://sro.sussex.ac.uk/id/eprint/49274

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