Innovation and productivity in a science-and-technology intensive sector: Information industries in Spain

Abstract

This article shows that the innovation objectives of firms in the Information and Communications Technology (ICT) industry are multidimensional. These objectives translate into complex innovation modes that in turn condition firms’ competitiveness. The ICT industry definition used in this article includes firms from the Content and Media sector, in line with modern delimitations of ICT-related activities. This article reports the results of an empirical exercise that focused on Spanish ICT firms included in the PITEC database, the source for the Community Innovation Survey, for the period 2004–13. The analysis uses the well-known Crépon-Duguet-Mairesse model, which captures the linkages between R&D, innovation, and productivity. The main results indicate strong innovation complementarities, different from those found by previous contributions for manufacturing and service sectors. If these complementarities are not taken into account when analysing the relationship between innovation and productivity, one could conclude that the link between the two is weaker than it really is. This innovation complexity may be one explanation for the productivity advantage of ICT firms.