ICT, R&D, and Organizational Innovation: Exploring Complementarities in Investment and Production

Pierre Mohnen, Michael Polder, George van Leeuwen

Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingAcademicpeer-review

Abstract

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.
Original languageEnglish
Title of host publicationMeasuring and Accounting for Innovation in the twenty-first Century
EditorsCarol Corrado, Jonathan Haskel, Javier Miranda, Daniel Sichel
PublisherUniversity of Chicago Press
Number of pages24
Volume78
ISBN (Electronic)9780226728209
ISBN (Print)9780226728179
Publication statusAccepted/In press - May 2021

Publication series

SeriesStudies in Income and Wealth
Volume78

JEL classifications

  • 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"

Keywords

  • ICT
  • R&D
  • Organizational Innovation
  • productivity
  • investment
  • complementarity

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