A Note on the Persistence of Firms' Innovation Behavior: A Dynamic Random Effect Probit Model Approach

Chia-Hui Huang ()
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Chia-Hui Huang: Institute of Industrial Economics, National Central University

Economics Bulletin, 2008, vol. 15, issue 5, pages 1-9

Abstract: Is firms' innovation behavior persistent? Using both patent and R&D intensity as proxy variables of innovation and employing a new estimation method of the dynamic random effect probit model, this study finds a strong effect of state dependence after controlling for the firm heterogeneity. This result indicates that there is a causal effect from past innovation to current innovation, supporting the hypothesis of persistent innovation.

Keywords: dynamic probit model; Innovation; persistence; state dependence (search for similar items in EconPapers)
JEL-codes: O3 C2 (search for similar items in EconPapers)
Date: 2008-03-06

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Persistent link: http://EconPapers.repec.org/RePEc:ebl:ecbull:v:15:y:2008:i:5:p:1-9

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