Title: Determinants of total factor productivity: evidence from US Compustat firms and Triadic Patent Families

Authors: Eleftherios Giovanis; Oznur Ozdamar

Addresses: Department of Economics, University of Verona, Via dell'Artigliere, 8, 37129, Italy; Department of Economics, Royal Holloway University of London, Egham, Surrey TW20 0EX, UK ' Department of Economics, Bologna University, Strada Maggiore 45, Kampus, 40125, Bologna, Italy

Abstract: This study examines the determinants of total factor productivity (TFP) in US firms. Moreover, the firms' technology diversification and its effects on TFP is explored. This study uses the US Compustat database during the period 1976-2009. The overall results indicate that both firm and industry characteristics can be important factors for TFP. In addition, the determinants of TFP are examined during economic recession and economic growth periods. The results show the firms that their business activities are more related within similar technologies are able to report higher productivity, especially during economic recession periods. As such, firms can monitor productivity for strategic reasons such as corporate planning and organisation improvement. It can also be used for tactical reasons such as project control or controlling performance to budget.

Keywords: firm characteristics; industry characteristics; innovation knowledge; panel data; procyclical factors; countercyclical factors; relatedness measures; total factor productivity; TFP; USA; United States; triadic patents; technology diversification.

DOI: 10.1504/IJEBR.2015.071845

International Journal of Economics and Business Research, 2015 Vol.10 No.3, pp.258 - 272

Received: 12 Mar 2015
Accepted: 04 Jul 2015
Published online: 19 Sep 2015 *

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