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Time-period and industry heterogeneity of innovation activity in Japan

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  • Yagi, Michiyuki
  • Managi, Shunsuke

Abstract

This study examines time-period and industry heterogeneity of innovation activity in Japan from 1964 to 2006 using patent data and non-consolidated firm data. This study focuses on the following three periods, based on changes of the Japanese patent system, in and non-manufacturing industries: (I) before 1976; (II) 1976–1987; and (III) after 1988. Specifically, for each degree of patent protection in each industry, this study examines how innovation activities are affected by the following determinants found in the innovation literature: size, market competition, and search variety (depth and scope). Empirical results show that when using the entire sample from 1964 to 2006, the size effect on innovation is significantly positive. In addition, the effects of market competition and search variety on innovation are inverse-U. When considering time-period heterogeneity, the effects of size and search variety are similar to the entire period; however, the inverse-U effect of market competition is broken after 1988. On the other hand, when considering industry heterogeneity, the effects of size and search variety are similar to the entire sample, but differ between manufacturing and non-manufacturing industries. In addition, the effect of market competition is not statistically significant in either industry.

Suggested Citation

  • Yagi, Michiyuki & Managi, Shunsuke, 2016. "Time-period and industry heterogeneity of innovation activity in Japan," Economic Analysis and Policy, Elsevier, vol. 50(C), pages 100-119.
    • Handle: RePEc:eee:ecanpo:v:50:y:2016:i:c:p:100-119
    DOI: 10.1016/j.eap.2016.03.002
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    3. Song Wang & Jiexin Wang & Chenqi Wei & Xueli Wang & Fei Fan, 2021. "Collaborative innovation efficiency: From within cities to between cities—Empirical analysis based on innovative cities in China," Growth and Change, Wiley Blackwell, vol. 52(3), pages 1330-1360, September.

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    More about this item

    Keywords

    Innovation; Patent; Inverse-U relationship; Competition; Search for variety;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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