The Diffusion of Informal Knowledge and Innovation Performance: A sectoral approach
AbstractThis paper tries to quantify the effect of diffusion of informal knowledge on the innovative performance of European firms using data derived from the 3rd Community Innovation Survey. When firms are asked whether or not they have introduced new products or processes, they were also asked to which degree such innovations were developed in-house. These degrees were captured by the CIS variables InPdtW and InPcsW. These variables ranged from 1 (Mainly done by the firm) to 3 (Mainly done by other enterprises). The focus of this paper is to investigate the impact of diffusion of informal knowledge. We combine the previous variables with another variable which reflects firms that were not doing any formal collaboration with other institutions. If an innovative firm has no formal collaboration arrangements and the innovation has not been done mainly by the firm, then diffusion of informal knowledge is considered to be the main driver of the innovation. The idea is that informal channels are accessible to all firms. This paper tries to quantify the impact of such flows of knowledge on firms' innovation performance. To do this, a two step procedure is followed: -In a first step, a latent variable for diffusion of informal knowledge is defined and estimated based on firms' characteristics. -In a second step, the latent diffusion variable is introduced as a regressor in a probit/tobit model.
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Bibliographic InfoPaper provided by United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology in its series UNU-MERIT Working Paper Series with number 013.
Date of creation: 2009
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Web page: http://www.merit.unu.edu
Knowledge flows; innovation; dynamic equations; sectoral innovation; CIS;
Other versions of this item:
- Garcia-Torres, M. Abraham & Hollanders, Hugo, 2009. "The Diffusion of Informal Knowledge and Innovation Performance: A sectoral approach," MERIT Working Papers 013, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-04-13 (All new papers)
- NEP-CSE-2009-04-13 (Economics of Strategic Management)
- NEP-INO-2009-04-13 (Innovation)
- NEP-KNM-2009-04-13 (Knowledge Management & Knowledge Economy)
- NEP-MIC-2009-04-13 (Microeconomics)
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- Abiodun A. Egbetokun, 2012. "Cooperation behaviour and innovation performance in the Nigerian manufacturing industry," Jena Economic Research Papers 2012-037, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Stoetzer, Matthias-Wolfgang & Pfeil, Silko & Kaps, Katharina & Sauer, Thomas, 2011. "Regional dispersion of cooperation activities as success factor of innovation oriented SME," Jena Contributions to Economic Research 2011,4, University of Applied Sciences Jena, Department of Business Administration.
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