EconPapers    
Economics at your fingertips  
 

The Link Between Firms? Innovation Decision and the Business Cycle: An Empirical Analysis

Diana Heger

No 04-85, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: The sensitivity of innovation activities with respect to the business cycle is often assumed to be small. In this paper the hypothesis on cyclical dependence of innovation activities is tested for firms in the German manufacturing, and additionally for SMEs. To this end firms? innovation decisions are considered. The decision to innovate in one period is modelled via a first-order Markov chain approach. The results suggest that the patterns in innovative behavior are linked to the business cycle.

Keywords: Innovation; Business Cycle; Panel Model; Markov Chains (search for similar items in EconPapers)
JEL-codes: L6 D21 O31 C23 C25 (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/24092/1/dp0485.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:2889

Access Statistics for this paper

More papers in ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2020-04-03
Handle: RePEc:zbw:zewdip:2889