6533b827fe1ef96bd128711c
RESEARCH PRODUCT
Product market regulation, innovation and productivity
Ivan LedezmaStéphane RobinBruno Amablesubject
productivityProduct marketProcess (engineering)Strategy and ManagementgrowthSample (statistics)Management Science and Operations ResearchProduct market regulationRéglementation des marchés de biens et serviceproductivitéManagement of Technology and InnovationManufacturing0502 economics and businessEconomicsRelevance (law)050207 economics[SHS.ECO] Humanities and Social Sciences/Economics and FinanceProductivityIndustrial organizationgrowthproductivityinnovationProduct market regulationcroissanceproductivitéRéglementation des marchés de biens et serviceLiberalizationbusiness.industryEconomic sector05 social sciencescroissanceinnovationEconomic systembusiness050203 business & managementdescription
Several recent policy and academic contributions consider that liberalising product markets would foster innovation and growth. This paper analyses the innovation-productivity relationship at the industry-level for a sample of OECD manufacturing industries. We pay particular attention to the vertically-induced influence of product market regulation (PMR) of key input sectors of the economy on the innovative process of manufacturing and its consequences on productivity. We test for a differentiated effect of this type of PMR depending on whether countries are technological leaders or laggards in a given industry and for a given time period. Contrary to the most widespread policy claims, the innovation-boosting effects of liberalisation policies at the leading edge are systematically not supported by the data. These findings question the relevance of a research and innovation policy based on liberalisation.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2014-03-01 |