Micro-Evidence on the Determinants of Innovation in The Netherlands: The Relative Importance of Absorptive Capacity and Agglomeration Externalities

Martijn Smit, Maria A. Abreu and Henri de Groot
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Maria A. Abreu: University of Groningen, University of Cambridge

No 10-060/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This discussion paper resulted in a publication in 'Papers in Regional Science' .

This paper employs firm-level data to analyze the relative importance of firm characteristics and agglomeration externalities in explaining variation in innovation rates across firms. More specifically, we combine micro-data and census data to estimate the probability that a firm will introduce a goods, service or process innovation. We consider internal firm-level characteristics as well as externalities, using information on the regional production structure to test for Marshall-Arrow-Romer, Porter and Jacobs effects. Our results show that most firm-specific variables are highly statistically significant, whereas agglomeration variables are only significant for a few specific sectors, and even then only for some types of innovation.

Keywords: innovation; absorptive capacity; agglomeration externalities; Community Innovation Survey; micro-data; firm behavior (search for similar items in EconPapers)
JEL-codes: L20 O30 R11 (search for similar items in EconPapers)
Date: 2010-06-21
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Journal Article: Micro-evidence on the determinants of innovation in the Netherlands: The relative importance of absorptive capacity and agglomeration externalities (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20100060

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