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Product market regulation, innovation and productivity

Abstract : Several recent policy and academic contributions consider that liberalising product markets would foster innovation and growth. This paper analyses the innovation-productivity relationship at the industry-level for a sample of OECD manufacturing industries. We pay particular attention to the vertically-induced influence of product market regulation (PMR) of key input sectors of the economy on the innovative process of manufacturing and its consequences on productivity. We test for a differentiated effect of this type of PMR depending on whether countries are technological leaders or laggards in a given industry and for a given time period. Contrary to the most widespread policy claims, the innovation-boosting effects of liberalisation policies at the leading edge are systematically not supported by the data. These findings question the relevance of a research and innovation policy based on liberalisation.
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https://halshs.archives-ouvertes.fr/halshs-00973947
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Submitted on : Friday, April 4, 2014 - 6:16:59 PM
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Long-term archiving on: : Friday, July 4, 2014 - 2:11:20 PM

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  • HAL Id : halshs-00973947, version 1

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Bruno Amable, Ivan Ledezma, Stéphane Robin. Product market regulation, innovation and productivity. 2014. ⟨halshs-00973947⟩

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