This paper examines whether there are complementarities between investments in ICT, R&D and organizational innovation, and the contributions of different investment profiles to total factor productivity growth on Dutch firm-level data. We estimate an integrated model of investment profile adoption and total factor productivity growth. We find that the three investment decisions are complementary, in the sense that investing in one increases the probability of investing in another, because joint investments lead to higher TFP growth than individual investments. ICT earns on average an average rate of return of 9.7%, followed by 6% to 7% on organizational innovation and a modest 1.4% to 1.8% on R&D in services and manufacturing respectively.
|Title of host publication||Measuring and Accounting for Innovation in the twenty-first Century|
|Editors||Carol Corrado, Jonathan Haskel, Javier Miranda, Daniel Sichel|
|Publisher||University of Chicago Press|
|Number of pages||24|
|Publication status||Accepted/In press - May 2021|
|Series||Studies in Income and Wealth|
- l25 - Firm Performance: Size, Diversification, and Scope
- o30 - "Technological Change; Research and Development; Intellectual Property Rights: General"
- o33 - "Technological Change: Choices and Consequences; Diffusion Processes"
- Organizational Innovation