On the Dynamics of Process Innovative Activity: An Empirical Investigation Using Panel Data
ISBN
1-85628-575-8
Type
book section
Date Issued
1994
Author(s)
Editor(s)
Oppenländer, K.
Poser, G.
Abstract
Not available in German. This paper addresses three major aspects of firms' process innovative activity: forward-looking behaviour, uncertainty w.r.t returns of R&D investments, and oligopolistic competition on the product market. Assuming that R&D expenditures are cost-reducing investments, we derive an Euler equation for process innovations and discuss alternative panel econometric approaches suitable to the case where only qualitative information is available. Empirical results are based on an unbalanced panel of German manufacturing firms for 1984-1989 and suggest that the Schumpeterian causality from firm size to innovation activity might in fact be attributed, at least partly, to hetereogeneity in the perception of process innovative success.
Language
English
HSG Classification
contribution to scientific community
Refereed
No
Book title
The Explanatory Power of Business Cycle Surveys
Publisher
Aldershot
Publisher place
Avebury
Subject(s)
Eprints ID
15704