Innovations and productivity of the Russian industrial companies

The present paper studies the relationship between R&D investment and firm productivity growth by explicitly accounting for non-linearities in the R&D-productivity relationship and inter-sectoral firm heterogeneity. The received empirical results showed that investments in an innovation: 1) increase productivity of the industrial companies with elasticity 0,09; 2) influence of investments in innovative activity on productivity depends on «intensity» of investments in R&D and has elasticity range from 0,03 (for low levels of «intensity» of investments in R&D) to 0,21 at high levels of «intensity»; 3) the relations between investments in an innovation and growth of productivity are not linear and have steady positive interrelation only after a certain critical mass of investments in research and development is reached; 4) the significant role on interrelation of investments in innovations and productivity is rendered by the characteristic of branch in which the company — the companies working in high-tech industries works not only put in R&D, innovative activity more, but also have more high efficiency caused by scientific researches and development; 5) the companies of low-technology branches have negative elasticity of investments in innovations and productivity that is connected with influence of effect of unprofitability of investments into innovations (appropriability effect), the additional profit on investment is not really essential

Keywords: innovations, CDM model, R&D investment, firm productivity, appropriability effect


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