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Innovation Strategy, Accessibility to Knowledge Intensive Producers of Services and Productivity: An Evaluation Method Approach
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Entrepreneurship and innovation.
2013 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

This study tests the hypothesis that firms productivity varies with the degree of internal knowledge (innovation status) and the proximity to external knowledge. We apply an evaluation method approach which consists on the estimation of average treatment effects on labour productivity with data from the Swedish Community Innovation Survey from the period 2006-2008. The estimation of the treatment effects is based on the estimation of propensity scores and "Nearest Neighbour Matching" estimator. The treatment variable is a combination of a firm´s innovation strategy and their knowledge-density location. The results obtained are partly in line with the theory on innovative firms´ internal capabilities, access to external knowledge sources, and firm productivity. On the one hand, the results follow the theory showing that firms that are persistently innovative and are located in high knowledge-density areas have greater labour productivity compared to all other firms. On the other hand, the estimate for labour productivity for non-innovative firms located in a high knowledge-density area is found to be greater than the estimate for persistently innovative firms located in low knowledge-density areas. The latter goes against the theory which proposes that only innovative firms can benefit, and perform better, from proximity to external generation of complex knowledge. Moreover, we test for the significance of the assumptions behind the methodology of treatment effect analysis, and we perform a sensitivity analysis on the results obtained in order to find the level of influence of hidden bias in the propensity score model used in this study.

Place, publisher, year, edition, pages
2013. , 49 p.
Keyword [en]
Innovation strategy, knowledge-density location, productivity, propensity score, nearest neighbour matching, average treatment effect, Community Innovation Survey.
National Category
Economics and Business
URN: urn:nbn:se:kth:diva-142922OAI: diva2:705083
Available from: 2014-04-17 Created: 2014-03-14 Last updated: 2014-04-17Bibliographically approved

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