Impact of ICT activities (ESSLait/ESSLimit project)

Project description:

In this project I have reviewed part of the outcome. I have suggested empirical applications based on micro moments database (MMD) with a special focus on the impacts of ICT/E-commerce activities and technological innovations.

I have contributed to a study on impact of E-commerce activities on productivity.

Funded by: Eurostat

Duration 2010-2014

Falk, M., & Hagsten, E. (2015). E-commerce trends and impacts across Europe. International Journal of Production Economics, 170, 357-369.

Empirical studies on the impacts of ICT/e-commerce activities in Europe

Empirical studies on the impacts of ICT/e-commerce activities in Europe


Carried out within the Service Contract for IPTS “Drivers and Barriers of ICT”


This report consists of three studies. The first study presents new empirical evidence on the impact of ICT/e-commerce activities on industry performance measured as employment and labour productivity growth. The second study presents new empirical evidence on the impact of ICT/e-commerce indicators on the skill intensity measured as the share of workers with a university degree. The third study investigates whether and to what extent ICT/e-commerce activities are enablers of innovation activities. The data consists of micro-aggregated data on firms drawn from the production, ICT and CIS survey. The report serves as background material for the IPTS research program “Drivers and Barriers of ICT”.

Duration: 7/2014-4/2015


Project team:

Martin Falk (project leader)

Characteristics of fast-growing and research-intensive companies in Austria

The study investigates the following questions:

What is the relationship between R & D activities, employment growth and the export rate?

Which group of R&D active enterprises shows high firm growth?

What are the project characteristics and eligibility criteria of fast-growing firms?

The empirical analysis is based on following data

• Wifo investment test

• Linked structural business statistics and the Austrian Innovation Survey (CIS)

• FFG monitoring and balance sheet data

• Impact monitoring of the FFG funding of SME research Austria

Project team:

Martin Falk (project leader) and Peter Kaufmann (SME research Austria)

Study conducted for the Austrian R&D funding agency

Duration: 7/2016-1/2017

Project report:


Employment growth and R&D activities

The aim of study is to investigate the impact of R&D spending on job creation and exporting after the financial market and economic crisis using data provided by the Austrian R&D promotion fund (FFG). The results show that firms with a high R&D intensity exhibit a higher employment growth than those with a low R&D intensity between 2009 and 2011. Finally, these companies also have a higher export ratio.

Funded by: Austrian R&D promotion agency (FFG)

Duration: 7/2012-1/2013

Project team:

Martin Falk (project leader)

Roland Spitzlinger

First evaluations of the eligibility criteria for R&D projects

Project description:

The study provides a first empirical attempt to analyze the evaluation procedure of research projects conducted by the Austrian R&D promotion fund. The different assessments are linked with firm characteristics. The results show that the assessment of the different eligibility criteria depends on company age, company size and industry affiliation. Furthermore, there are strong and significant correlations among the different eligibility criteria. Good ratings of the innovative content and novelty of the research projects are correlated with the expected benefits, technical feasibility and additionality.

Funded by: Austrian R&D promotion agency (FFG)

Duration: 7/2012-1/2013

Project team:

Martin Falk (project leader)

Roland Spitzlinger

Innovation and employment

Project description

Using a matched innovation survey and structural business statistics, we investigate the impact of the introduction of technological innovations on employment growth measured as subsequent two-year employment growth rates. Results for manufacturing firms using median and robust regression methods show that, on average, both the introduction of new goods and new production processes have a significant and positive impact on subsequent employment growth. In contrast, the introduction of new services does not, on average, have a significant impact on employment growth for both manufacturing and service firms. However, quantile regressions show that the introduction of new service products has a significant and positive impact on firm growth for high growth service firms. Finally, in manufacturing, the introduction of product innovations has a positive impact on firm growth at both the lower and higher ends of distribution (i.e. for both high-growth and shrinking firms).

Duration: 7/2012-7/2013

Funded by: Chamber of Labour Austria


Impact of technological and organisational innovations: First results based on matched CIS and structural business statistics data

Project description

This is a collaborative project with Statistics Austria based on linked structural business data for the period 2004-2008 and the Community Innovation Survey (CIS) 2006. SAS codes have been written for execution by Statistics Austria. The regression output is sent back after checking for disclosure rules.

The first part investigates the impact of service innovations on firm growth measured as employment growth based on the linked firm level data (structural business statistics 2004-2008 with the Community Innovation Survey (2006).

Results based on quantile regressions models shows that the introduction of new services does not lead to higher subsequent employment growth but has significant impact for high growth service firms. In contrast, traditional product innovations have significant employment effects.

The second part analyses the impact of technological, organizational and marketing innovations using a labour demand model. The results show that both product innovations (new to the firm) and market novelties have a large and significant impact on employment growth when controlling for changes in wages and output. However, organizational and marketing innovations do not lead to higher innovations. There are also remarkable differences across the conditional distribution of employment change with higher effects in the lower quantiles.


Funded by: Austrian National Bank

Project Team: Martin Falk, Statistics Austria

Duration: 2/2012-7/2013

Project output:

Falk, M. (2014). The impact of new goods and service products on firm growth: evidence from Austrian-linked firm-level data. Economics of Innovation and New Technology, 23(4), 378-397.

Falk, M. (2015). Employment effects of technological and organizational innovations: evidence based on linked firm-level data for Austria. Jahrbücher für Nationalökonomie und Statistik, 235(3), 268-285.


Internationalisation of SMEs

Drivers of SME Internationalisation: Implications for Firm Growth and Competitiveness

Carried out within the Framework Service Contract N° ENTR/2009/033

Project team:

Martin Falk (chapter coord.)

together with Gavin Murphy (ESRI, Ireland), Iulia Siedschlag (ESRI), Eva Hagsten (Statistics Sweden), Magdalona Sass, Andrea Szalavetz, Jan A. Vessel (Centre for Regional and Economic Studies, Hungarian Academy of Sciences), Daniel Mirza (University of Tours and CIRAM/ CEPII)´, Davide Castellani (Uni Perugia), Jože Damijan (University of Ljubljana), Barbara Franconi, Patricia Kotnik, Alessandro Pagano.

Internal reviewer: Heinz Hollenstein

Funded by DG Enterprise

This chapter investigates the determinants and impacts of internationalisation of SMEs in Europe. It highlights the trends, determinants, and impacts of SME internationalisation. Possible factors include firm specific advantages, host and home country factors. Special emphasis is put on the internationalisation activities of micro enterprises. Several firm level databases are used to describe internationalisation activities of European SMEs across industries, time, and destination markets.

Duration: October 2013-September 2014



ICTNET European Network for the Research on the Economic Impact of ICTs

The project consisted of a network of researchers and research institutions with an established research record in the economics of ICT.


Funded by: European Commission

Duration 2010-2012


‘IT workers and regional growth in Europe, 1st ICT conference, Parma, December 17, 2010


Service Gap (7th framework project)

The SERVICEGAP project has investigated the drivers and impacts of the increasing importance of market services

Duration: 2010 April to 2013 April

Project team: Yvonne Wolfmayr, Martin Falk (coordination)

Project results:

Falk M .and Peng F. (2013), The increasing service intensity of European manufacturing

33.15/16, 1686-1706.

Wolfmayr, Y (2012), Export performance and increased services content in manufacturing, National Institute economic review, 220, 36-52.

Falk, M (2011), The Impact of Service Sector Innovation and Internationalisation on Growth and Productivity - Greater linkages between manufacturing and services Sep-11, European Policy Brief

Falk, M. The increasing service intensity of European manufacturing, EIBA 2011, Bucharest Romania 11th Dec.

Falk, M, Determinants of greenfield investment in business services, EIBA 2012 Brighton, UK 12th Dec.

Falk, M. Determinants of greenfield investment in business services, ETSG 2012 Leuven, Belgium 12th Sep

Foreign Direct Investment

The aim of this study is to investigate the home market effects Austria's FDI activities abroad, the effects of outsourcing and offshoring to low wage countries and its impact on the productivity of national companies.

Commissioned by: Ministry of Economic Affairs and Labour (Bundesministerium für Wirtschaft und Arbeit, BMWA).

International R&D Spillovers (finished project)

The aim of the study is to re-investigate the impact of R&D capital and international R&D spillovers on total factor productivity in the OECD countries. In particular, we analyse the sensitivity of the impact of foreign R&D capital with respect to different weights (e.g. share of foreign direct investment, trade, technological proximity). Furthermore, we investigate the parameter heterogeneity of the effects across country groups (i.e. large vs. small countries) and across time. The empirical results show that domestic R&D capital is significantly positively related to GDP per capita and TFP with a larger effect for Austria. Furthermore, we find that the impact of domestic R&D capital increased over time. whereas foreign R&D capital stagnated.

Duration: 01.11.2007 - 15.5.2008

Commissioned by: Ministry of Economic Affairs and Labour

(Bundesministerium für Wirtschaft und Arbeit (BMWA)).

Downloadable (in German)!


Investment survey (ongoing project)

WIFO’s investment survey is carried out twice a year in order to assess investment trends. It also contains information on the structure of investment (equipment, structures, ICT investment) and R&D expenditures for the manufacturing and construction sector based on 800 firm observations.

R&D activities and firm growth (finished project)

The aim of the study is to investigate the relationship between initial R&D intensity and firm growth using a unique data set for firms with R&D activities in Austria between the period 1995-2006. Results based on the LAD estimator show that the initial R&D intensity has a positive and significant impact on both employment and turnover growth in the subsequent two years. Quantile regressions for each cross-section reveal that the impact of R&D intensity is only significant from 0.3 to the highest quantile of the conditional distribution of employment growth. However, the elasticity of employment growth with respect to R&D intensity is highest for firms at or slightly below the median of the distribution of firm size. Finally, we find that the R&D coefficient decreases significantly over time.

The study also analyses the development and structure of R&D activities performed by businesses in Austria involved in R&D in Austria during 1995-2006, based on the following company characteristics: age, size, R&D intensity in the first year, export rate, region, existence of research cooperation with universities and/or extra-university research institutions.

Duration: 1.07.2008 - 31.10.2008

Commissioned by: Austrian Council for Research and Technology Development

downloadable (in German)


downloadable(in english)



Innovation and Competitiveness of the Creative Industries (finished project)


Background Report on

Innovation and Competitiveness of the Creative Industries

Carried out within the Framework Service Contract B2/ENTR/05/091 – FC


The primary objective of this report is to give a comprehensive picture of the innovation performance and competitiveness of the creative industries, along with their relative size and economic performance in the EU-27 countries. In doing so, it explores the growth drivers of the CIs. But even more it is concerned with the impact of the CIs on the economy. The study is structured according to three main ways (primary, secondary and tertiary) in which the CIs have an impact on the economy.

Chapter 2 deals with a definition of the CIs in statistical terms. Some attention will be given to delineating the CIs from related concepts such as cultural/content/copyright industries and cultural/experience/digital economies, respectively. Chapter 3 features the primary and secondary economic impact of the CIs. The primary economic impact of the CIs refers to their direct contribution to the economy – usually in terms of employment and some output measure such as value added, turnover or exports. In particular, it deals with these primary economic impacts by looking at

• the size and the evolution of CI employment in the EU over the period 1999–2007 (section 3.1)

• the size distribution of the CIs, value added and turnover of selected subbranches (section 3.2)

• the extent of spatial clustering and the underlying factors which give rise to agglomeration effects (section 3.3)

• trade in creative products of the EU, the USA and China over the period 2000–2006 (section 3.7).

The secondary economic impact looks at spin-offs in the wider economy resulting from the economic activity of the CIs. These are the indirect but quantifiable contributions of the CIs. In other words, the secondary impact assesses how important the CIs are for stimulating

• regional growth through regional spillovers (section 3.4)

• demand in other sectors of the economy through sectoral spillovers (sections 3.5 and 3.6)

The tertiary economic impact aims to capture the direct, but less quantifiable contributions of the CIs to the innovation system. Accordingly, chapter 4 first explores how innovative the CIs are and then investigates the channels through which the above-mentioned spillovers manifest themselves. This chapter contains two case studies: one for the UK and one for the Netherlands; these draw together very recent empirical evidence to form tight analytical reviews that illustrate the broader theoretical and empirical mechanisms explored in the main part of the report.

This report will only briefly touch upon the quaternary economic impact of the CIs, which are concerned with aspects such as the CI’s role in improving the quality of life, effectuating (maintaining and/or restoring) a sense of cultural identity and realizing a wide range of other societal objectives. These indirect and non-quantifiable contributions of the CIs are referred to only in section 5.1, which screens the rationales for policy intervention. Section 5.2 surveys CI policies across EU Member States. Finally, the last section (5.3) explores the scope and limits of EU policy intervention in the fields of CIs.


Contributors: Chapter 1 to 3 Rahel Falk, Martin Falk, Catherine Keppel

Contributors: Chapter 4: Hasan Bakhshi, Roland Spitzlinger

Chapter 5.2: Wilhelm Geiger, Susanne Karr, Hannes Leo, Erich Pöttschacher

Chapter 5.1 and 5.3: Rahel Falk

Duration: 1.07.2010 - 30.06.2010