Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/174304
Authors: 
Di Ubaldo, Mattia
Siedschlag, Iulia
Year of Publication: 
2017
Series/Report no.: 
ESRI Working Paper 571
Abstract: 
This paper examines the relationship between investment in innovation and productivity across firms in Ireland. We estimate a structural model using information from three linked micro data sets over the period 2005-2012 and identify the relationships between investment in innovation, innovation outputs and productivity. Our results indicate that innovation is positively linked to productivity. This result holds for all types of innovation and for both R&D and non-R&D expenditures. The innovation-related productivity gains range from 16.2 per cent to 35.4 per cent. The strongest link between innovation and productivity is found for firms with R&D spending and with product innovation.
Subjects: 
Investment in innovation
innovation outputs
productivity
firm heterogeneity
JEL: 
F10
F23
O31
Document Type: 
Working Paper

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