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Product‐Marketing Innovation, Skills, and Firm Productivity Growth
Author(s) -
Junge Martin,
Severgnini Battista,
Sørensen Anders
Publication year - 2016
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/roiw.12192
Subject(s) - productivity , endogeneity , product innovation , marketing , product (mathematics) , business , new product development , industrial organization , survey data collection , marketing management , economics , econometrics , economic growth , statistics , geometry , mathematics
The role of product and marketing innovation for productivity growth is addressed using survey and register data for the D anish economy. It is hypothesized that product and marketing innovation are complementary inputs and that innovation activities are skill‐intensive. It is established that product and marketing innovation in skill‐intensive firms results in significantly faster productivity growth. Moreover, product and marketing innovation have independent roles in productivity growth, which cannot be attributed to organizational changes. Finally, we apply an instrument variable approach for firms, innovation choices to study endogeneity. The results strongly support the idea that product–marketing innovation leads to faster productivity growth in skill‐intensive firms.