CIRJE-F-350 | "Innovation Versus Diffusion: Determinants of Productivity Growth Among Japanese Firms" |
Author Name | Nishimura, Kiyohiko G., Takanobu Nakajima and Kozo Kiyota |
Date | June 2005 |
Full Paper | PDF file@ |
Remarks | @Subsequently published as "Measurement of the Market Power of Firms: The Japanese Case in the 1990s," Industrial and Corporate Change, 18:3 (2009), 381-414, |
Abstract |
This paper presents a model of firm-level productivity growth that distinguishes between
innovation and technology diffusion, and then applies the model to a large-scale data set of
Japanese manufacturing and non-manufacturing firms between 1994 and 2000. We find both
innovation and diffusion are important factors in firm-level productivity growth. Results also
suggest that innovation comes not only directly from R&D activities, but also indirectly from
patent purchases and imports. Previously, patent purchases and imports were considered as
sources of technology diffusion rather than innovation. In fact, we find patent purchases are
more effective in this regard than R&D expenditure. |