Article-detailsAdvances in Industrial Engineering and Management
 Article-details | AIEM

2019(Volume 8)
Vol. 8, No. 1 (2019)
2018(Volume 7)
Vol. 7, No. 1 (2018)
Vol. 7, No. 2 (2018)
2017(Volume 6)
Vol. 6, No. 2 (2017)
Vol. 6, No. 1 (2017)
2016(Volume 5)
Vol. 5, No. 2 (2016)
Vol. 5, No. 1 (2016)
2015(Volume 4)
Vol. 4, No. 2 (2015)
Vol. 4, No. 1 (2015)
2014(Volume 3)
Vol.3, No.4 ( 2014 )
Vol.3, No.3 ( 2014 )
Vol.3, No.2 ( 2014 )
Vol.3, No.1 ( 2014 )
2013 ( Volume 2 )
Vol.2, No.2 ( 2013 )
Vol.2, No.1 ( 2013 )
2012 ( Volume 1 )
Vol. 1, No.1 ( 2012 )



ISSN:2222-7059 (Print);EISSN: 2222-7067 (Online)
Copyright © 2000- American Scientific Publishers. All Rights Reserved.

Title : Information and Communication Technology (ICT) and R&D for Innovation and Productivity
Author(s) : Manoj Kumar*
Author affiliation : Echelon Institute of Technology Faridabad, YMCA University of Science & Technology Faridabad, Haryana, India
Corresponding author img Corresponding author at : Corresponding author img  

Business innovation is regarded as an important driver of productivity growth. In this paper, it is investigated that R&D and ICT investment at the firm level in an effort to assess their relative importance for innovation. Explicitly, it is used a refined version of the CDM model that includes ICT and R&D investment as the two main inputs into innovation and productivity, and test it on a firm-level panel data set based on the recent four waves of the innovation survey for India. Two measures of innovative output are tested, i.e., four types of innovation (product, process, organizational and marketing innovation) and number of patent applications. It is found that R&D and ICT are both strongly associated with innovation and productivity, with R&D being more important for innovation, and ICT being more important for productivity. These results suggest that ICT is an important driver of productivity growth that could explain the “Indian productivity puzzle”, i.e., the feature that India having a relative low level of R&D intensity. The results also indicate considerable differences between firms in Manufacturing and Services with respect to innovation and productivity effects of ICT, R&D and human capital.

Key words:Innovation; ICT; R&D; Productivity; CDM model; Manufacturing and Services.

Cite it:

Full Text : PDF(size: 997.5 kB, pp. 17-46, Download times:66)

DOI : 10.7508/aiem.2019.01.002

[1] Crépon B, Duguet E, Mairesse J. Research, innovation and productivity: an econometric analysis at the firm level, Economics of Innovation and New Technology (1998) 7(1): 115–158.
[2] Griffith R, Huergo E, Mairesse J, Peters B. Innovation and productivity across four European countries, Oxford Review of Economic Policy (2006) 22(4): 483–498.
[3] Parisi M, Schiantarelli F, Sembenelli A. Productivity, innovation and R&D: micro-evidence for Italy, European Economic Review (2006) 50(8): 2037–2061.
[4] Van Ark B, Inklaar R, McGuckin R. ICT and productivity in Europe and the United States: Where do the differences come from?, CESifo Economic Studies (2003) 49 (3): 295–318.
[5] Vincenzo S. Are ICT Users More Innovative? An Analysis of ICT-Enabled Innovation in OECD Firms, OECD Journal: Economic Studies (2011) 1(1): 342-361.
[6] Bresnahan T, Trajtenberg M. General purpose technologies: Engines of Growth, Journal of Econometrics (1995) 65(2): 83–108.
[7] Castiglione C. Technical efficiency and ICT investment in Italian manufacturing firms, Applied Economics (2012) 44(1): 1749–1763.
[8] Brynjolfsson E, Hitt L. Beyond Computation: Information Technology, Organizational Transformation and Business Performance, Journal of Economic Perspectives (2000) 14(4): 23–48.
[9] Brynjolfsson E, Hitt L. Computing Productivity: Firm-level Evidence, Review of Economics and Statistics (2003) 85(4): 793–808.
[10] Gago D, Rubalcaba L. Innovation and ICT in service firms: towards a multidimensional approach for impact assessment, Journal of Evolutionary Economics (2007) 17(2): 25–44.
[11] Hall H, Lotti F, Mairesse J. Evidence on the impact of R&D and ICT investment on innovation and productivity in Italian firms, Economics of Innovation and New Technology (2013) 22(3): 300–328.
[12] Eurostat: Information Society: ICT impact assessment by linking data from different sources, (2008).
[13] Brynjolfsson E, Hitt L. Information technology as a factor of production: the role of differences among firms, Economics of Innovation and New Technology (1995) 3(2): 183–199.
[14] Rogers M. Networks, Firm Size and Innovation, Small Business Economics (2004) 22(1): 141–153.
[15] Gretton P, Gali J, Parham D. The Effects of ICTs and Complementary Innovations on Australian Productivity Growth, In: OECD (2004) The Economic Impact of ICT: Measurement, Evidence and Implications, OECD Publishing, (2004) pp. 105–130.
[16] Lööf H, Heshmati A. Knowledge capital and performance heterogeneity, International Journal of Production Economics (2002) 76(1): 61–85.
[17] Castellacci F. How does competition affect the relationship between innovation and productivity? Estimation of a CDM model for Norway, Economics of Innovation and New Technology (2011) 20(7): 637–658.
[18] Lehr B, Lichtenberg F. Information Technology and its Impact on Firm level Productivity: Evidence from Government and Private Data Sources 1977– 1993, Canadian Journal of Economics (1999) 32(2): 335–362.
[19] Griliches Z. Patent statistics as economic indicators: A survey, Journal of Economic Literature (1990) 28(1): 1661–1707.
[20] Greene W. Econometric Analysis. 5th ed. Upper Saddle River, NJ: Prentice-Hall (2003).
[21] Aghion P, Blundell R, Griffith R, Howitt P, Prantl S. The effects of entry on incumbent innovation and productivity, The Review of Economics and Statistics (2009) 91(1): 20–32.
[22] Hempell T. What's Spurious? What's Real? Measuring the Productivity Impacts of ICT at the Firm Level, Empirical Economics (2005) 30(2): 427–464.
[23] Leeuwen G, Klomp L. On the contribution of innovation to multifactor productivity growth, Economics of Innovation and New Technology (2006) 15(5): 367–390.
[24] Breshnahan F, Brynjolfsson E, Hitt M. Information technology, workplace organization and the demand for skilled labour: firm-level evidence, Quarterly Journal of Economics (2002) 117(2): 339–376.
[25] Draca M., R.Sadun and J. van Reenen (2007): Productivity and ICTs: A review of the evidence, Chapter 5 in Mansell, R., C. Avgerou, D. Quah and R. Silverstone (editors): The Oxford Handbook of Information and Communication Technologies, Oxford University Press.
[26] Cappelen Å, Raknerud A, Rybalka M. The effects of R&D tax credits on patenting and innovations, Research Policy (2012) 41(2): 334- 345.
[27] Heckman J. Sample selection bias as a specification error, Econometrica (1979) 47(2): 153–161.
[28] Amemiya, T. Tobit models: a survey, Journal of Econometrics (1984) 24(1): 30–62.
[29] Stolzenberg M, Relles D. Tools for Intuition about Sample Selection Bias and Its Correction. American Sociological Review (1997) 62(3): 494– 507.

Terms and Conditions   Privacy Policy  Copyright©2000- 2014 American Scientific Publishers. All Rights Reserved.