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

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Author Info
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.

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File URL: http://economicsbulletin.vanderbilt.edu/2008/volume15/EB-07O30006A.pdf
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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 15 (2008)
Issue (Month): 5 ()
Pages: 1-9
Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Handle: RePEc:ebl:ecbull:v:15:y:2008:i:5:p:1-9

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Related research
Keywords: dynamic probit model Innovation persistence state dependence

Find related papers by JEL classification:
O3 - Economic Development, Technological Change, and Growth - - Technological Change
C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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This page was last updated on 2008-6-16.


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