What Drives the Productive Efficiency of a Firm?: The Importance of Industry, Location, R&D, and Size

Variable

____________________1992-2005____________________

_______________________1999-2005______________________

(I)

(II)

(III)

(IV)

(V)

(VI)

10% least

b/n 10%

10% most

10% least

b/n 10%

10% most

efficient

and 90%

efficient

efficient

and 90%

efficient

Firm-specific factors
a) Size category
less than 49 employees

0.02 (1.51)

0.08^* (24.27)

0.07^* (3.89)

-0.01 (-0.51)

0.08^* (20.50)

0.07^* (3.07)

50-99 employees

0.01 (0.98)

0.07^* (19.64)

0.07^* (3.64)

-0.01 (-0.27)

0.07^* (17.02)

0.06^* (2.99)

100-249 employees

0.001 (0.05)

0.05^* (14.53)

0.06^* (3.06)

-0.004 (-0.20)

0.05^* (12.92)

0.05 (2.27)

250-499 employees

-0.0003 (-0.02)

0.03^* (9.52)

0.05^* (2.77)

0.001 (0.05)

0.03^* (8.42)

0.04 (1.74)

500-999 employees

More than 1000 employees

0.01 (0.86)

0.02^* (5.48)

0.05^* (2.44)

-0.01 (-0.40)

0.02^* (5.39)

0.03 (1.20)

Share in industry

-0.12 (-1.39)

-0.01 (-0.27)

0.34^* (2.79)

-0.09 (-1.00)

-0.01 (-0.57)

0.37^* (2.55)

Number of owners working
in the firm

0.002 (0.57)

0.01^* (13.05)

0.002 (0.75)

0.001 (0.10)

0.01^* (10.56)

0.003 (1.08)

R&D intensity

b) Outsourcing activities

-0.04 (-0.65)

-0.06^* (-4.26)

-0.08 (-1.28)

Quota of material inputs

0.03* (8.75)

0.01^* (22.41)

-0.001 (-1.24)

0.01^* (2.62)

0.01^* (20.14)

-0.0004 (-0.62)

Quota of external contract
work

0.03 (1.67)

0.01^* (5.19)

0.03^* (8.89)

0.001 (0.03)

0.01^* (4.50)

0.02^* (5.38)

Quota of external services

1.2015

0.01 (0.89)

0.02 (1.53)

-0.05^* (-2.43)

-0.01^* (-1.64)

0.04 (1.62)

Quota of temporarily em-
ployed labor

-0.14 (-1.11)

0.002 (0.12)

-0.02 (-0.32)

Quota rents and leases

Sample selection control

4.88E-05 (0.12)

2.44E-07 (0.34)

-4.59E-05 (-0.74)

Number of years observed

0.02* (3.07)

-0.003* (-3.20)

-0.01* (-2.47)

0.01* (4.62)

-0.002* (-6.09)

-0.004* (-2.77)

Number of observations

3,865

30,9∏      '

3,865

1,720

20,H5

2,504