Environment, innovation and productivity: application of a CDM model to the spanish service sector

Abstract

The main aim of this study is to determine the impact of innovation on productivity in service sector companies — especially those in the hospitality sector — that value the reduction of environmental impact as relevant to the innovation process. We used a structural analysis model based on the one developed by Crépon, Duguet, and Mairesse (1998). This model is known as the CDM model (an acronym of the authors’ surnames). These authors developed seminal studies in the field of the relationships between innovation and productivity (Griliches 1979; Pakes and Grilliches 1980). The main advantage of the CDM model is its ability to integrate the process of innovation and business productivity from an empirical perspective.