[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/p/lmu/muenar/20365.html
   My bibliography  Save this paper

On the dynamics of product and process innovations - A bivariate random effects probit model

Author

Listed:
  • Flaig, Gebhard
  • Stadler, Manfred
Abstract
Based on a stochastic dynamic model of a firm’s optimal innovativebehavior we derive a simultaneous equation system for product andprocess innovations with intertemporal spillover effects. We estimatevarious versions of the model with dichotomous innovation data at thefirm level by using a bivariate dynamic random effects probit model. Thedata set, provided by the Ifo-Institute, covers the period between 1981and 1989 and includes 586 firms of the West German manufacturing sector.It turns out that the firms probabilities of product and processinnovations depend positively on dynamic spillover effects even if onecontrols for firm size, market concentration, demand expectations, laborcost, unobserved heterogeneity and potential endogeneity of theexplanatory variables.

Suggested Citation

  • Flaig, Gebhard & Stadler, Manfred, 1998. "On the dynamics of product and process innovations - A bivariate random effects probit model," Munich Reprints in Economics 20365, University of Munich, Department of Economics.
  • Handle: RePEc:lmu:muenar:20365
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Robinson, Peter M, 1982. "On the Asymptotic Properties of Estimators of Models Containing Limited Dependent Variables," Econometrica, Econometric Society, vol. 50(1), pages 27-41, January.
    2. König, Heinz & Laisney, François & Lechner, Michael & Pohlmeier, Winfried, 1993. "On the dynamics of process innovative activity: an empirical investigation using panel data," ZEW Discussion Papers 93-08, ZEW - Leibniz Centre for European Economic Research.
    3. Zoltan J. Acs & David B. Audretsch, 2008. "Innovation in Large and Small Firms: An Empirical Analysis," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 1, pages 3-15, Edward Elgar Publishing.
    4. Jeffrey I. Bernstein & M. Ishaq Nadiri, 1989. "Research and Development and Intra-industry Spillovers: An Empirical Application of Dynamic Duality," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 56(2), pages 249-267.
    5. Jaffe, Adam B, 1986. "Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value," American Economic Review, American Economic Association, vol. 76(5), pages 984-1001, December.
    6. Giovanni Dosi, 2000. "Sources, Procedures, and Microeconomic Effects of Innovation," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 2, pages 63-114, Edward Elgar Publishing.
    7. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    8. Kamien,Morton I. & Schwartz,Nancy L., 1982. "Market Structure and Innovation," Cambridge Books, Cambridge University Press, number 9780521293853, December.
    9. Cohen, Wesley M. & Levin, Richard C., 1989. "Empirical studies of innovation and market structure," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 18, pages 1059-1107, Elsevier.
    10. Laisney, Francois & Lechner, Michael & Pohlmeier, Winfried, 1992. "Innovation activity and firm heterogeneity: Empirical evidence from West Germany," Structural Change and Economic Dynamics, Elsevier, vol. 3(2), pages 301-320, December.
    11. Zoltan Acs & David Audretsch, 1990. "Innovation and Small Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011131, April.
    12. Ernst R. Berndt & Bronwyn H. Hall & Robert E. Hall & Jerry A. Hausman, 1974. "Estimation and Inference in Nonlinear Structural Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 3, number 4, pages 653-665, National Bureau of Economic Research, Inc.
    13. Gerosky, P A & Pomroy, R, 1990. "Innovation and the Evolution of Market Structure," Journal of Industrial Economics, Wiley Blackwell, vol. 38(3), pages 299-314, March.
    14. Geroski, P A, 1990. "Innovation, Technological Opportunity, and Market Structure," Oxford Economic Papers, Oxford University Press, vol. 42(3), pages 586-602, July.
    15. Pohlmeier, Winfried, 1992. "On the Simultaneity of Innovations and Market Structure," Empirical Economics, Springer, vol. 17(2), pages 253-272.
    16. Flaig, Gebhard & Stadler, Manfred, 1994. "Success Breeds Success. The Dynamics of the Innovation Process," Empirical Economics, Springer, vol. 19(1), pages 55-68.
    17. Vickers, John S, 1986. "The Evolution of Market Structure When There Is a Sequence of Innovations," Journal of Industrial Economics, Wiley Blackwell, vol. 35(1), pages 1-12, September.
    18. Butler, J S & Moffitt, Robert, 1982. "A Computationally Efficient Quadrature Procedure for the One-Factor Multinomial Probit Model," Econometrica, Econometric Society, vol. 50(3), pages 761-764, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bettina Peters, 2009. "Persistence of innovation: stylised facts and panel data evidence," The Journal of Technology Transfer, Springer, vol. 34(2), pages 226-243, April.
    2. M. Constanza Demmel & Juan A. Máñez & María E. Rochina-Barrachina & Juan A. Sanchis-Llopis, 2017. "Product and process innovation and total factor productivity: Evidence for manufacturing in four Latin American countries," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 1341-1363, November.
    3. Tea Petrin & Dragana Radicic, 2023. "Instrument policy mix and firm size: is there complementarity between R&D subsidies and R&D tax credits?," The Journal of Technology Transfer, Springer, vol. 48(1), pages 181-215, February.
    4. Martin Kukuk & Manfred Stadler, 2001. "Financing Constraints and the Timing of Innovations in the German Services Sector," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 28(3), pages 277-292, September.
    5. Smolny, Werner, 1997. "Endogenous innovations in a model of the firm: Theory and empirical application for West-German manufacturing firms," Discussion Papers 39, University of Konstanz, Center for International Labor Economics (CILE).
    6. Agnes Bäker & Werner Güth & Kerstin Pull & Manfred Stadler, 2011. "Creativity, Analytical Skills, Personality Traits, and Innovation Game Behavior in the Lab: An Experiment," Jena Economics Research Papers 2011-056, Friedrich-Schiller-University Jena.
    7. Sascha O. Becker & Klaus Wohlrabe, 2008. "European Data Watch: Micro Data at the Ifo Institute for Economic Research – The “Ifo Business Survey”, Usage and Access," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 128(2), pages 307-319.
    8. Kukuk Martin & Stadler Manfred, 2005. "Market Structure and Innovation Races / Marktstruktur und Innovationsrennen: An Empirical Assessment Using Indirect Inference / Eine empirische Untersuchung mit Hilfe der indirekten Schätzmethode," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 225(4), pages 427-440, August.
    9. Klaus Abberger & Sascha Becker & Barbara Hofmann & Klaus Wohlrabe, 2007. "Mikrodaten im ifo Institut für Wirtschaftsforschung – Bestand, Verwendung und Zugang," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 1(1), pages 27-42, June.
    10. Stefan Kipar, 2012. "Determinants of Firm Innovation - Evidence from German Panel Data," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 45.
    11. Güth, Werner & Pull, Kerstin & Stadler, Manfred, 2012. "Creativity, analytical skills, personality traits, and innovative capability: A lab experiment," University of Tübingen Working Papers in Business and Economics 44, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.
    12. Juan Máñez & María Rochina-Barrachina & Amparo Sanchis-Llopis & Juan Sanchis-Llopis, 2015. "The determinants of R&D persistence in SMEs," Small Business Economics, Springer, vol. 44(3), pages 505-528, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Smolny, Werner, 1997. "Endogenous innovations in a model of the firm: Theory and empirical application for West-German manufacturing firms," Discussion Papers 39, University of Konstanz, Center for International Labor Economics (CILE).
    2. Smolny, Wernerr, 1996. "Innovations, prices, and employment: A theoretical model and an empirical application for West-German manufacturing firms," Discussion Papers 37, University of Konstanz, Center for International Labor Economics (CILE).
    3. Cohen, Wesley M., 2010. "Fifty Years of Empirical Studies of Innovative Activity and Performance," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 129-213, Elsevier.
    4. Jaakko Simonen, 2005. "The innovativeness of the Finnish high technology firms – The role of internal factors, cooperation, and the mobility of labour," ERSA conference papers ersa05p462, European Regional Science Association.
    5. Bettina Becker, 2013. "The Determinants of R&D Investment: A Survey of the Empirical Research," Discussion Paper Series 2013_09, Department of Economics, Loughborough University, revised Sep 2013.
    6. Lee, Chang-Yang & Sung, Taeyoon, 2005. "Schumpeter's legacy: A new perspective on the relationship between firm size and R&D," Research Policy, Elsevier, vol. 34(6), pages 914-931, August.
    7. Lee, Chang-Yang, 2009. "Competition favors the prepared firm: Firms' R&D responses to competitive market pressure," Research Policy, Elsevier, vol. 38(5), pages 861-870, June.
    8. Becker Wolfgang & Peters Jürgen, 2005. "Innovation Effects of Science-Related Technological Opportunities / Innovationseffekte von technologischen Möglichkeiten aus dem Wissenschaftsbereich: Theoretical Considerations and Empirical Findings," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 225(2), pages 130-150, April.
    9. Dietmar Harhoff, 1997. "Incentives to Innovate: A Structural Model of Oligopoly (available only in German!)," CIG Working Papers FS IV 97-09, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    10. Rinaldo Evangelista & Valeria Mastrostefano, 2006. "Firm size, sectors and countries as sources of variety in innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(3), pages 247-270.
    11. Conte, Andrea & Vivarelli, Marco, 2005. "One or Many Knowledge Production Functions? Mapping Innovative Activity Using Microdata," IZA Discussion Papers 1878, Institute of Labor Economics (IZA).
    12. García-Quevedo, José & Pellegrino, Gabriele & Vivarelli, Marco, 2014. "R&D drivers and age: Are young firms different?," Research Policy, Elsevier, vol. 43(9), pages 1544-1556.
    13. Alfred Haid & Markus Thomas Münter, 1999. "Neuere Entwicklungen in der industrieökonomischen Forschung und die aktuelle Berichterstattung über die technologische Leistungsfähigkeit Deutschlands," Discussion Papers of DIW Berlin 188, DIW Berlin, German Institute for Economic Research.
    14. Richard Harris & John Moffat, 2011. "R&D, Innovation and Exporting," SERC Discussion Papers 0073, Centre for Economic Performance, LSE.
    15. Joshua S. Gans & David H. Hsu & Scott Stern, 2002. "When Does Start-Up Innovation Spur the Gale of Creative Destruction?," RAND Journal of Economics, The RAND Corporation, vol. 33(4), pages 571-586, Winter.
    16. Michael L. Katz & Howard A. Shelanski, 2005. "Merger Policy and Innovation: Must Enforcement Change to Account for Technological Change?," NBER Chapters, in: Innovation Policy and the Economy, Volume 5, pages 109-165, National Bureau of Economic Research, Inc.
    17. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144, Edward Elgar Publishing.
    18. Rouvinen, Petri, 1999. "Characteristics of Product and Process Innovators among Finnish Manufacturing Firms," Discussion Papers 690, The Research Institute of the Finnish Economy.
    19. Wilfred Dolfsma & Gerben Velde, 2014. "Industry innovativeness, firm size, and entrepreneurship: Schumpeter Mark III?," Journal of Evolutionary Economics, Springer, vol. 24(4), pages 713-736, September.
    20. Peretto, P. & Smulders, J.A., 1998. "Specialization, Knowledge Dilution, and Scale Effects in an IO-Based Growth Model," Other publications TiSEM 167c9440-7cc2-481e-a673-c, Tilburg University, School of Economics and Management.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lmu:muenar:20365. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tamilla Benkelberg (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.