TY - JOUR AU - Griffith,Rachel AU - Huergo,Elena AU - Mairesse,Jacques AU - Peters,Bettina TI - Innovation and Productivity across Four European Countries JF - National Bureau of Economic Research Working Paper Series VL - No. 12722 PY - 2006 Y2 - December 2006 UR - http://www.nber.org/papers/w12722 L1 - http://www.nber.org/papers/w12722.pdf N1 - Author contact info: Rachel Griffith IFS 7 Ridgmont Street London WC1E 7AE UK E-Mail: rgriffith@ifs.org.uk Elena Huergo Universidad Complutense Facultad CC. Económicas y Empresariales Campus de Somosaguas 28223 Madrid - Spain E-Mail: ehuergo@ccee.ucm.es Jacques Mairesse CREST-INSEE 15, Boulevard Gabriel PERI 92245 MALAKOFF CEDEX FRANCE Tel: 33-1-41-17-35-50 Fax: 33-1-41-17-76-34 E-Mail: mairesse@ensae.fr Bettina Peters ZEW Postfach 103443 D-68043 Mannheim Germany E-Mail: b.peters@zew.de AB - This paper compares the role innovation plays in productivity across the four European countries France, Germany, Spain and the UK using firm-level data from the internationally harmonized Community Innovation Surveys (CIS3). Despite a considerable number of national firm-level studies analysing this relationship, cross-country comparisons using micro data are still rare. We apply a structural model that describes the link between R&D expenditure, innovation output and productivity (CDM model). Our econometric results suggest that overall the systems driving innovation and productivity are remarkably similar across these four countries, although we also find interesting differences, particularly in the variation in productivity that is associated with more or less innovative activities. ER -