Research Seminar: The Impact of Innovation on Productivity: Profitability and Technical Efficiency
Nazarbayev University Graduate School of Business invites you to the Research Seminar titled “The Impact of Innovation on Productivity: Profitability and Technical Efficiency”, presented by Dr. Jeroen Van den bosch
The productivity measures used so far in the innovation literature reflect firm performance, which confounds profitability and technical efficiency. Nevertheless, the distinction between the two is crucial. We propose a decomposition model to improve our understanding about how firms profit from innovation. We apply this model using a unique dataset with product level data on prices and quantities next to information on innovation activities and traditional firm performance measures. We find that firms benefit differently from demand and cost driven innovation. Demand innovators charge high prices, have high marginal costs and low technical efficiency; the opposite is true for cost innovators. We show how these findings reconcile the heterogeneity in estimated returns from innovation in earlier empirical studies.
Time: 6 pm - 7 pm
Area: Economics / Strategy
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Jeroen Van den bosch
PostDoc researcher at IMEC and the department of Management, Strategy and Innovation of the University of Leuven.
Jeroen Van den bosch obtained a PhD in Economics at the University of Leuven under the supervision of Prof. Cassiman, Prof. Konings and Prof. Vanormelingen. His main research interests are in Industrial Organization and Applied Microeconomics, particularly with applications in Strategy and Innovation. Currently, he is a PostDoc researcher at IMEC and the department of Management, Strategy and Innovation of the University of Leuven.