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

Author

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  • Chia-Hui Huang

    (Institute of Industrial Economics, National Central University)

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.

Suggested Citation

  • Chia-Hui Huang, 2008. "A Note on the Persistence of Firms' Innovation Behavior: A Dynamic Random Effect Probit Model Approach," Economics Bulletin, AccessEcon, vol. 15(5), pages 1-9.
    • Handle: RePEc:ebl:ecbull:eb-07o30006
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    Citations

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    Cited by:

    1. Cristiano Antonelli & Francesco Crespi & Giuseppe Scellato, 2013. "Internal and external factors in innovation persistence," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 22(3), pages 256-280, April.
    2. Christian Le Bas & Caroline Mothe & Thuc Uyen Nguyen-Thi, 2011. "Technological innovation persistence : Literature survey and exploration of the role of organizational innovation," Working Papers halshs-00649095, HAL.
    3. Christian Le Bas & Caroline Mothe & Thuc Uyen Nguyen-Thi, 2015. "The differentiated impacts of organizational innovation practices on technological innovation persistence," Post-Print halshs-01497289, HAL.
    4. Trinh, Long, 2015. "Is innovation activity persistent among small firms in developing countries? Evidence from Vietnam," MPRA Paper 63767, University Library of Munich, Germany.
    5. Rammer, Christian & Schubert, Torben, 2016. "Concentration on the few? R&D and innovation in German firms 2001 to 2013," ZEW Discussion Papers 16-005, ZEW - Leibniz Centre for European Economic Research.
    6. Christian Le Bas & Caroline Mothe & Thuc Uyen Nguyen-Thi, 2015. "The differentiated impacts of organizational innovation practices on technological innovation persistence," Post-Print hal-01301433, HAL.

    More about this item

    Keywords

    dynamic probit model;

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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