Working Paper: NBER ID: w13156
Authors: Lisa M. Lynch
Abstract: Using a unique longitudinal representative survey of both manufacturing and non-manufacturing businesses in the United States during the 1990's, I examine the incidence and intensity of organizational innovation and the factors associated with investments in organizational innovation. Past profits tend to be positively associated with organizational innovation. Employers with a more external focus and broader networks to learn about best practices (as proxied by exports, benchmarking, and being part of a multi-establishment firm) are more likely to invest in organizational innovation. Investments in human capital, information technology, R&D, and physical capital appear to be complementary with investments in organizational innovation. In addition, non-unionized manufacturing plants are more likely to have invested more broadly and intensely in organizational innovation.
Keywords: organizational innovation; productivity; US economy; human capital; information technology
JEL Codes: D2; J24; M5; O3
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| past profits (D33) | organizational innovation (O35) |
| external focus (exports and benchmarking) (F10) | organizational innovation (O35) |
| investments in human capital, IT, R&D, and physical capital (J24) | organizational innovation (O35) |
| union presence (J51) | organizational innovation (O35) |
| past profits (D33) | investments in organizational innovation (O35) |