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On Nonparametric Estimation of the Schumpeterian Link between Innovation and Firm Size: Evidence from Belgium, France, and Germany

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  • Bertschek, Irene
  • Entorf, Horst

Abstract

This paper analyses the Schumpeterian link between innovative activity and firm size by means of the nonparametric Nadaraya-Watson estimator and of the partially linear approach by Speckman. Four data sets referring to the manufacturing industries of three European countries are available for the analysis. We demonstrate how nonparametric methods can produce more reliable conclusions than conventional methods. For this purpose, the roles of bandwidth choice, wild bootstrap, density estimation and trimming are studied. For the German data set of 1984 and for the French data set, we find that small firms and large firms are more innovative than firms of intermediate size while the relation is rather hump-shaped for Germany 1989 and decreasing for Belgium. Including an additional parametric component into the estimations based on the French data, contributes considerably to the explanation of innovative activity without affecting the U-shaped link between innovation and firm size.

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Bibliographic Info

Article provided by Springer in its journal Empirical Economics.

Volume (Year): 21 (1996)
Issue (Month): 3 ()
Pages: 401-26

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Handle: RePEc:spr:empeco:v:21:y:1996:i:3:p:401-26

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Cited by:
  1. Torben Klarl & Alfred Maussner, 2010. "Firm Heterogeneity, Credit Constraints, and Endogenous Growth," Discussion Paper Series 311, Universitaet Augsburg, Institute for Economics.
  2. Laforet, Sylvie, 2008. "Size, strategic, and market orientation affects on innovation," Journal of Business Research, Elsevier, vol. 61(7), pages 753-764, July.
  3. Jin, Justin Yiqiang & Kanagaretnam, Kiridaran & Lobo, Gerald J. & Mathieu, Robert, 2013. "Impact of FDICIA internal controls on bank risk taking," Journal of Banking & Finance, Elsevier, vol. 37(2), pages 614-624.
  4. Rehme, Günther, 2008. "Wissen und Neue Wachstumstheorie: Die Rolle von fachspezifischem Humankapital," Darmstadt Discussion Papers in Economics 35708, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute of Economics (VWL).
  5. Caspari, Volker, 2001. "Marktstruktur, Wettbewerb und Innovation," Darmstadt Discussion Papers in Economics 37705, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute of Economics (VWL).
  6. Juan Gabriel Rodríguez & Rafael Salas, 2004. "A Bistochastic Nonparametric Estimator," Economic Working Papers at Centro de Estudios Andaluces E2004/22, Centro de Estudios Andaluces.
  7. Carmen Camarero & Mª Garrido & Eva Vicente, 2011. "How cultural organizations’ size and funding influence innovation and performance: the case of museums," Journal of Cultural Economics, Springer, vol. 35(4), pages 247-266, November.
  8. Rouvinen, Petri, 1999. "Characteristics of Product and Process Innovators among Finnish Manufacturing Firms," Discussion Papers 690, The Research Institute of the Finnish Economy.

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