Innovation activity in industrial sector of St. Petersburg economy: Econometric analysis of generated effects

Abstract

The paper is devoted to macroeconomic analysis of innovation activity. Being generated by national innovation system the innovation process is examined as a factor of economic development. Special emphasis is on econometric modeling of the impact the macroeconomic indicators of in-novation process produce for economic development in terms of total industrial output, value added and labor productivity. The data on industrial sector of St. Petersburg economy (1995–2004) is utilized for empirical part of the study. Alterative macroeconomic models (production functions) were estimated and tested. Assessment of the impact on total industrial output, value added and labor productivity provided by "innovation factor" variables has been completed on the basis of the most "plausible" (in statistical and economic sense) empirical models.