Abstract
In this paper, we study the impact of endogenous innovation and the external technological environment on total factor productivity. We first develop an endogenous growth model and derive a testable empirical model. We then estimate the empirical model based on the World Bank’s worldwide enterprise survey data for 119 countries spanning 2007–2017. Our results suggest that: (i) enterprises’ R&D activity increases their total factor productivity; (ii) a higher level of external technology weakens the impact of the R&D activity on total factor productivity; and (iii) enterprises located in low‐ and middle‐income countries often lack continuous innovation.
Original language | English |
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Pages (from-to) | 3-29 |
Number of pages | 27 |
Journal | Accounting & Finance |
Volume | 62 |
Issue number | 1 |
Early online date | 17 Mar 2021 |
DOIs | |
Publication status | Published - Mar 2022 |
Keywords
- Innovation
- R&D
- Technological environment
- Total factor productivity