Services Innovation and Economic Performance

Luísa Ferreira Lopes

Manuel Mira Godinho

Services Contribution to GDP

0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

0,9

1

Aus

tral

iaA

ustr

iaB

elgi

umC

anad

aC

zech

Rep

.D

enm

ark

Fin

land

Fra

nce

Ger

man

yG

reec

eIc

elan

dIr

elan

dIt

aly

Japa

nK

orea

Lux

emb.

Mex

ico

Net

herl

ands

New

Zea

land

Nor

way

Por

tuga

lSp

ain

Swed

enSw

itzer

land

Tur

key

U.K

.U

.S.A

.

% Services 1987 % Services 1997

Source: National Accounts, OECD

CIS2 – Results for PortugalInnovation in Services

0

10

20

30

40

50

60IT

-BS

Tel

ecom

Fin

ance

Eng

enee

.-B

ST

rans

port

Tra

de

%Innovativefirms

Source: Conceição & Ávila, 2001

CIS2 – Results for Europe% Innovative Firms in Services

0102030405060708090

Bel

giu

mG

erm

any

Fra

nce

Irel

and

Lu

xem

bur

gN

eth

erl..

.A

ust

ria

Fin

lan

dS

wed

enU

.K.

No

rway

Po

rtu

gal

Trade

Transport &Telecom

Finance

IT & Engeneering

Source: Conceição & Ávila, 2001

The Model

List of Variables

Innovation Activities

Model Specification

Services Industries in Data Set

Sample Description

Sistem Estimation

Separate Estimation

What is new ?

• The analyses of the innovation-productivity relationship in the services context – With a structural model– Considering the characteristics of the data

• Compare previous quantitative services studies

Limitations

• Pure cross-section

• Proxis for labor productivity and innovation output

Any conclusions, so far? ......

• Endogeneity is a major problem

• The choice of instruments is critical for the results

• The model is highly sensitive to different estimation methods

Developments

• Further tests to determine the best specification and estimation method

• Test for structural changes in the model• Extend the model and consider other

countries – SIEPI database• Use a value added measure for

productivity• Combine CIS3 survey with CIS2 to build a

panel data set