Persistence of Innovation: Stylised Facts and Panel Data Evidence
Bettina Peters ()
Development and Comp Systems from EconWPA
This paper investigates whether firms innovate persistently or discontinuously over time using an innovation panel data set on German manufacturing and service firms for the period 1994-2002. We find that innovation behaviour is permanent at the firm-level to a very large extent. Using a dynamic random effects discrete choice model and a new estimator recently proposed by Wooldrigde (2005), we further shed some light on the driving forces for this phenomenon. The econometric results confirm the hypothesis of true state dependence for manufacturing as well as for service sector firms. In addition to past innovation experience, the results further highlight the important role of knowledge provided by skilled employees and unobserved individual heterogeneity in explaining the persistence of innovation.
Keywords: innovation; persistence; state dependence; unobserved heterogeneity; dynamic random effects panel probit model (search for similar items in EconPapers)
JEL-codes: O31 L20 C23 C25 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ent, nep-ino and nep-tid
Note: Type of Document - pdf; pages: 50
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Journal Article: Persistence of innovation: stylised facts and panel data evidence (2009)
Working Paper: Persistence of Innovation Stylised Facts and Panel Data Evidence (2006)
Working Paper: Persistence of Innovation: Stylised Facts and Panel Data Evidence (2005)
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpdc:0511021
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