Producing Innovations: Determinants of Innovativity and Efficiency

  • Jaap W.B. BosEmail author
  • Ryan C. R. van Lamoen
  • Mark W. J. L. Sanders
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 249)


In this chapter, we investigate the knowledge production function, using the Community Innovation Survey, an unbalanced firm-level panel data set collected in the Netherlands between 1994 and 2004. This database allows us to span the entire innovation process from initial resources committed (R&D labor and the accumulated knowledge stock) to the final resulting sales volume of new products. We find that inefficiency accounts for between 50 and 92% of the unexplained between firm and over time variation in innovation output, with changes in efficiency explaining on average 62% of the between-firm variation in innovativeness. We do not find a significant difference in average inefficiency between those that do and those that do not cooperate with competitors. However, although government funding does not affect the marginal productivity of the knowledge stock and research labor, firms receiving government support are more efficient than those that do not. Finally, we find that more competitive firms are more innovative in terms of generating new product sales from innovations.


Innovation Scale economies Frontier 


D21 G21 L10 O30 



We thank Jacques Mairesse and Pierre Mohnen for helpful discussions. The usual disclaimer applies.


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Copyright information

© Springer International Publishing AG 2016

Authors and Affiliations

  • Jaap W.B. Bos
    • 1
    Email author
  • Ryan C. R. van Lamoen
    • 2
  • Mark W. J. L. Sanders
    • 3
  1. 1.Maastricht University School of Business and EconomicsMaastrichtThe Netherlands
  2. 2.Risk Management DepartmentDe Nederlandsche Bank, Financial Markets DivisionAmsterdamThe Netherlands
  3. 3.Utrecht School of EconomicsUtrecht UniversityUtrechtThe Netherlands

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