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The Innovation Decision and Fixed Costs

Kees Montfort, Geert Ridder and Alfred Kleinknecht
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Kees Montfort: Free University Amsterdam
Geert Ridder: University of Southern California

Chapter 5 in The Emergence of the Knowledge Economy, 2002, pp 81-106 from Springer

Abstract: Abstract In this study we analyse two new indicators of a firm’s innovative output, i.e., sales per employee of products that are ‘new to the firm’ and sales per employee of products that are ‘new to the firm’s industry’. These indicators were first analysed in Brouwer and Kleinknecht (1996). They noted that, during the observation year, many firms had no sales in either of these two categories and proposed an ad hoc model to deal with the observations with zero sales. A drawback of their procedure is that the parameter estimates do not have a clear interpretation.

Keywords: Exogenous Variable; Fixed Cost; Threshold Model; Tobit Model; Innovative Product (search for similar items in EconPapers)
Date: 2002
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DOI: 10.1007/978-3-540-24823-1_5

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