Technological regimes and sectoral differences in productivity growth

Abstract

The article explores a novel extension of the R&D-productivity literature. It puts forward an empirical model where sectoral productivity growth is related to the characteristics of technological regimes and a set of other industry-specific economic features. The model is estimated on a cross-section of manufacturing industries in nine European countries for the period 1996–2001. The econometric results provide basic support for most of the hypotheses put forward by the model. They show, in particular, that sectoral differences in productivity growth in Europe are related to cross-industry differences in terms of the following main factors: (i) appropriability conditions; (ii) levels of technological opportunities; (iii) education and skill levels; (iv) the degree of openness to foreign competition; and (v) the size of the market. Copyright 2007 , Oxford University Press.