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Persistence of Innovation in Dutch Manufacturing: Is it Spurious?

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  • Wladimir Raymond
  • Pierre Mohnen

    ()

  • Franz Palm
  • Sybrand Schim van der Loeff

Abstract

This paper studies the persistence of innovation and the dynamics of innovation output in Dutch manufacturing using firm data from three waves of the Community Innovation Surveys (CIS), pertaining to the periods 1994-1996, 1996-1998, and 1998-2000. We estimate by maximum likelihood a dynamic panel data type 2 tobit model accounting for individual effects and handling the initial conditions problem. We find that there is no evidence of true persistence in achieving technological product or process innovations, while past shares of innovative sales condition, albeit to a small extent, current shares of innovative sales. Cette étude analyse la persistance et la dynamique de l’innovation dans les entreprises manufacturières néerlandaises à partir des données de trois vagues d’enquêtes communautaires sur l’innovation (ECI), portant sur les périodes 1994-1996, 1996-1998 et 1998-2000. Nous estimons par la méthode du maximum de vraisemblance un modèle tobit de type II dynamique sur données de panel avec effets individuels et traitement explicite des conditions initiales. Nous concluons qu’il n’y a pas de véritable persistance dans le fait d’innover en produits ou en procédés, mais que les observations passées des parts du chiffre d’affaires en produits innovants influencent, quoique faiblement, les données contemporaines de ces parts.

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Bibliographic Info

Paper provided by CIRANO in its series CIRANO Working Papers with number 2006s-04.

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Date of creation: 01 Feb 2006
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Handle: RePEc:cir:cirwor:2006s-04

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Keywords: dynamic panel data type 2 tobit; innovation; spurious persistence; modèle tobit de type II dynamique; données de panel; persistence; innovation;

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  1. Geroski, Paul A, 1989. "Entry, Innovation and Productivity Growth," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 572-78, November.
  2. Bettina Peters, 2009. "Persistence of innovation: stylised facts and panel data evidence," The Journal of Technology Transfer, Springer, vol. 34(2), pages 226-243, April.
  3. Jeffrey M Wooldridge, 2002. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," CeMMAP working papers CWP18/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  4. Crepon, Bruno & Duguet, Emmanuel, 1997. "Estimating the Innovation Function from Patent Numbers: GMM on Count Panel Data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(3), pages 243-63, May-June.
  5. Bo E. Honoré & Ekaterini Kyriazidou, 2000. "Panel Data Discrete Choice Models with Lagged Dependent Variables," Econometrica, Econometric Society, vol. 68(4), pages 839-874, July.
  6. Luuk Klomp & George Van Leeuwen, 2001. "Linking Innovation and Firm Performance: A New Approach," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(3), pages 343-364.
  7. Zvi Griliches, 1991. "Patent Statistics as Economic Indicators: A Survey," NBER Working Papers 3301, National Bureau of Economic Research, Inc.
  8. Bruno Crépon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation and Productivity : An Econometric Analysis at the Firm Level," Working Papers 98-33, Centre de Recherche en Economie et Statistique.
  9. Janz, Norbert & Lööf, Hans & Peters, Bettina, 2004. "Firm Level Innovation and Productivity - Is there a Common Story Across Countries?," Working Paper Series in Economics and Institutions of Innovation 24, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  10. Malerba, Franco & Orsenigo, Luigi, 1999. "Technological entry, exit and survival: an empirical analysis of patent data," Research Policy, Elsevier, vol. 28(6), pages 643-660, August.
  11. Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
  12. Kyriazidou, Ekaterini, 2001. "Estimation of Dynamic Panel Data Sample Selection Models," Review of Economic Studies, Wiley Blackwell, vol. 68(3), pages 543-72, July.
  13. repec:fth:harver:1473 is not listed on IDEAS
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