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Product and Process Innovation as a Response to Increasing Import and Foreign Direct Investment

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Author Info
Bertschek, Irene
Abstract

This paper analyzes the hypotheses that imports and inward foreign direct investment have positive effects on the innovative activity of domestic firms because competition on the domestic market is thereby increased and domestic firms have to perform more efficiently to maintain their market position. Chamberlain's random effects probit approach, which may account for individual heterogeneity depending on exogenous variables, is used to analyze a panel data set containing 1,270 firms of the German manufacturing industry from 1984 to 1988. It turns out that both import share and foreign-direct-investment-share have positive and significant effects on product and process innovations. Copyright 1995 by Blackwell Publishing Ltd.

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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Industrial Economics.

Volume (Year): 43 (1995)
Issue (Month): 4 (December)
Pages: 341-57
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:bla:jindec:v:43:y:1995:i:4:p:341-57

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821

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  1. Gorodnichenko, Yuriy & Svejnar, Jan & Terrell, Katherine, 2008. "Globalization and Innovation in Emerging Markets," IZA Discussion Papers 3299, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Craig Lofts & Joanne Loundes, 2000. "Foreign Ownership, Foreign Competition and Innovation in Australian Enterprises," Melbourne Institute Working Paper Series wp2000n20, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
  3. Philippe Aghion & Richard Blundell & Rachel Griffith & Peter Howitt & Susanne Prantl, 2006. "The Effects of Entry on Incumbent Innovation and Productivity," NBER Working Papers 12027, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. William Greene, 2002. "Convenient estimators for the panel probit model: Further results," Working Papers 02-06, New York University, Leonard N. Stern School of Business, Department of Economics. [Downloadable!]
    Other versions:
  5. Bertschek, Irene & Fryges, Helmut, 2002. "The Adoption of Business-to-Business E-Commerce: Empirical Evidence for German Companies," ZEW Discussion Papers 02-05, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  6. George Symeonidis, 2001. "Price Competition, Innovation and Profitability: Theory and UK Evidence," Economics Discussion Papers 530, University of Essex, Department of Economics. [Downloadable!]
    Other versions:
  7. Czarnitzki, Dirk & Kraft, Kornelius, 2000. "Haftungsregeln und Innovation," ZEW Discussion Papers 00-38, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  8. Bertschek, Irene & Lechner, Michael, . "Convenient Estimators for the Panel Probit Model," IVS discussion paper series 528, Institut für Volkswirtschaft und Statistik (IVS), University of Mannheim. [Downloadable!]
    Other versions:
  9. Joachim Inkmann, 1999. "Misspecified heteroskedasticity in the panel probit model: A small sample comparison of GMM and SML estimators," Finance 9904003, EconWPA. [Downloadable!]
    Other versions:
  10. Martin Burda & Roman Liesenfeld & Jean-Francois Richard, 2008. "Bayesian Analysis of a Probit Panel Data Model with Unobserved Individual Heterogeneity and Autocorrelated Errors," Working Papers tecipa-321, University of Toronto, Department of Economics. [Downloadable!]
  11. Petri Rouvinen, 1999. "Characteristics of Product and Process Innovators among Finnish Manufacturing Firms," Discussion Papers 690, The Research Institute of the Finnish Economy. [Downloadable!]
  12. Carmine Ornaghi, 2002. "Spillovers In Product And Process Innovation: Evidence From Manufacturing Firms," Economics Working Papers we023213, Universidad Carlos III, Departamento de Economía. [Downloadable!]
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