Premium
Unbundling Technology Adoption and tfp at the Firm Level: Do Intangibles Matter?
Author(s) -
Battisti Michele,
Belloc Filippo,
Del Gatto Massimo
Publication year - 2015
Publication title -
journal of economics and management strategy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.672
H-Index - 68
eISSN - 1530-9134
pISSN - 1058-6407
DOI - 10.1111/jems.12094
Subject(s) - total factor productivity , unbundling , simultaneity , productivity , complementary assets , industrial organization , economics , panel data , business , microeconomics , econometrics , macroeconomics , physics , classical mechanics
We use a panel of European firms to investigate the relationship between intangible assets and productivity. We distinguish between total factor productivity ( tfp ) and technology adoption, whereas standard estimations consider only a notion of productivity that conflates the two effects. Although we are unable to address simultaneity, we allow for the existence of multiple technologies within sectors through a mixture model approach. We find that intangible assets have nonnegligible effects that both push firms toward better technologies ( technology adoption effects) and allow for more efficient exploitation of a given technology ( tfp effects).