Innovation and Growth in the Nordic Economies (IGNOREd)

Science, research and innovation are vital for productivity and economic growth. Competitiveness, wealth creation and high living standards depend on the ability of business firms to create, use and diffuse knowledge. Yet, few empirical studies consider the influence of both innovation inputs (R&D and other innovative activities) and innovation outputs (patents, new products and processes). Firm heterogeneity also suggests policy differentiation.

To address these analytical and policy issues, empirical evidence on the effect of innovation on firm productivity and growth are needed. An extensive base of underused data exists that contains comparable information on innovation and financial performance for almost all firms in the Nordic and Baltic region. This data allows us to identify new indicators on the effects of innovation, to explore the roles of cooperation, public funding and organizational change in more depth, and to target policies that promote better economic performance.

The main objective of this project is to identify policies that can improve the effect of science, research and innovation on productivity and economic growth of business enterprises. As its secondary objective, it will analyze the nature of the relationship, evaluate policy measures used to improve performance, examine factors that may affect the impact, and identify certain puzzles in the relationship. Knowledge creation, technology transfer and spillovers will be important for the analysis.

Project participants:
Assistant professor Carter Bloch
Head of department Peter S. Mortensen

Innovation indicators and performance– An analysis for Danish firms
C. Bloch

Innovativeness - an examination of innovative sales as a measure of innovation output
C. Bloch and E. K. Graversen