Original scientific paper
https://doi.org/10.1080/1331677X.2023.2172739
Growth of total productivity of the factors, innovation and spillovers from advanced business services
Vicent Almenar-Llongo
Javier Muñoz- de-Prat
Mónica Maldonado-Devis
Abstract
Advanced business services (ABS) are seen as generators and disseminators
of innovation among their client companies, and their
use by client companies can improve efficiency and productivity.
However, one question that has not been addressed is whether
ABS provision can be an explanatory factor for the total productivity
of the factors (TPF). This paper aims to determine whether the
innovation generated and/or transmitted by ABS companies is
reflected in the TPF growth in the manufacturing sector. For this
purpose, a Cobb-Douglas function was estimated using panel data
analysis on data of ten OECD countries in the period 1977-1996.
ABS labour was considered the proxy variable for the provision of
these types of services and treated as a separate factor in the production
process. The quantitative study shows that the contribution
of labour endowment in ABS to the efficiency and productivity
of manufacturing industry is significant, that it generates spillovers
and that it is an explanatory factor for the TPF.
Keywords
Advanced business services (ABS); TPF determinants; knowledge spillovers; innovation diffusion; Cobb- Douglas function
Hrčak ID:
306835
URI
Publication date:
30.4.2023.
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