eprintid: 10152863 rev_number: 10 eprint_status: archive userid: 699 dir: disk0/10/15/28/63 datestamp: 2022-07-29 10:04:50 lastmod: 2023-12-19 10:45:46 status_changed: 2022-07-29 10:04:50 type: article metadata_visibility: show sword_depositor: 699 creators_name: Fedyunina, A creators_name: Radosevic, S title: The relationship between R&D, innovation and productivity in emerging economies: CDM model and alternatives ispublished: pub divisions: UCL divisions: D92 divisions: B03 keywords: Innovation, CDM model, R&D, Productivity, Technology capability, Emerging economies, Eastern Europe note: This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. abstract: CDM (Crépon, Duguet and Mairesse, 1988) is a workhorse model in the economics of innovation, which explains productivity in a three-stage procedure driven initially by R&D and leads to patents and then to productivity improvements. Based on the logic of this model, an increasing number of papers applies it to emerging economies but modifies the original model without being explicit about the nature and implications of this modification. We argue in this paper that, in its original form, CDM does not capture stylized facts of the determinants of productivity in emerging economies and that we need alternative models. Accordingly, we are critical of papers that try to maintain the validity of the model but actually change it. For that purpose, we test the original CDM model and its two alternatives: investment and production capability–driven models. Our research is based on a large sample of firms in Central and Eastern Europe, former Soviet republics and Turkey, and we show that the alternative models are much closer to the stylized facts of innovation activities and technology upgrading in these and other emerging economies. Our conclusions have important policy implications, which we discuss. date: 2022-09 date_type: published publisher: Elsevier BV official_url: https://doi.org/10.1016/j.ecosys.2022.100998 oa_status: green full_text_type: other language: eng primo: open primo_central: open_green verified: verified_manual elements_id: 1966084 doi: 10.1016/j.ecosys.2022.100998 lyricists_name: Radosevic, Slavo lyricists_id: SRADO39 actors_name: Radosevic, Slavo actors_id: SRADO39 actors_role: owner full_text_status: public publication: Economic Systems volume: 46 number: 3 article_number: 100998 issn: 0939-3625 citation: Fedyunina, A; Radosevic, S; (2022) The relationship between R&D, innovation and productivity in emerging economies: CDM model and alternatives. Economic Systems , 46 (3) , Article 100998. 10.1016/j.ecosys.2022.100998 <https://doi.org/10.1016/j.ecosys.2022.100998>. Green open access document_url: https://discovery.ucl.ac.uk/id/eprint/10152863/1/CDM%20Alternative_re-revised-final-March-submission.pdf