We study determinants of the probability of introducing an orga-nizational innovation using three large cross sections of Italian man-ufacturing firms in the period 1995-2003. We analyze the effect and complementarity of other types of investments, like ICT, R&D, human and physical capital and the adoption of product or process innova-tions. Furthermore, we estimate the effect of introducing organiza-tional innovations and indirectly technical innovations on the growth rate of labor productivity for the unbalanced panel of firms. Disem-bodied technological change is well represented by OIs, while product 1 innovations seem to have an effect on the efficiency of capital inputs only (capital stock-embodied technical change). Process innovations do not have a statistical impact as an indirect input-efficiency driving force, in our data. 1

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Mind the gap! International comparisons of productivity in services and goods production