Unbundling Technology Adoption and tfp at the Firm Level: Do Intangibles Matter?. Issue 2 (June 2015)

• Record Type: Journal Article
• Authors: Battisti, Michele; Belloc, Filippo; Del Gatto, Massimo
• Is Part Of: Journal of economics & management strategy. Volume 24:Issue 2(2015)
• Page Start: 390
• Page End: 414
• Publication Date: 2015-06
• Subjects: Economics -- Periodicals; Business -- Periodicals; Management -- Periodicals; Strategic planning -- Periodicals; 330.1
• DOI: 10.1111/jems.12094
• Languages: English
• ISSNs: 1058-6407

Abstract

<abstract abstract-type="main"> <title> <x xml:space="preserve">Abstract</x> </title> <p>We use a panel of European firms to investigate the relationship between intangible assets and productivity. We distinguish between total factor productivity (<italic>tfp</italic>) and technology adoption, whereas standard estimations consider only a notion of productivity that conflates the two effects. Although we are unable to address simultaneity, we allow for the existence of multiple technologies within sectors through a mixture model approach. We find that intangible assets have nonnegligible effects that both push firms toward better technologies (<italic>technology adoption</italic> effects) and allow for more efficient exploitation of a given technology (<italic>tfp</italic> effects).</p> </abstract>