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Abstract

Analyzing changes over time in firm-level R&D efforts we find that demand growth in a firm's sector of principal activity has a positive influence on changes in a firm's R&D effort, confirming Schmookler's (1969) 'demand-pull' hypothesis. This finding points to an aspect of effective demand which has never been directly noticed by Keynes or the Keynesians. Such findings are important because of evidence in the literature that a firm's innovation activities are positively related to employment growth, export intensity and profits.

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File URL: ftp://zappa.ubvu.vu.nl/19970038.pdf
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Bibliographic Info

Paper provided by VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics in its series Serie Research Memoranda with number 0038.

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Date of creation: 1997
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Handle: RePEc:dgr:vuarem:1997-38

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Web page: http://www.feweb.vu.nl

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Find related papers by JEL classification:

• E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
• 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-2002-03-14 (All new papers)
• NEP-INO-2002-03-14 (Innovation)
• NEP-PKE-2002-03-14 (Post Keynesian Economics)

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Cited by:

1. Pierre Mohnen & Jacques Mairesse & Marcel Dagenais, 2006. "Innovativity: A Comparison Across Seven European Countries," CIRANO Working Papers 2006s-11, CIRANO.
   
   • Pierre Mohnen & Jacques Mairesse & Marcel Dagenais, 2006. "Innovativity: A comparison across seven European countries," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 15(4-5), pages 391-413.
   • Mohnen, Pierre & Mairesse, Jacques & Dagenais, Marcel, 2006. "Innovativity: A comparison across seven European countries," UNU-MERIT Working Paper Series 027, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
   • Pierre Mohen & Jacques Mairesse & Marcel Dagenais, 2006. "Innovativity : A Comparison Across Seven European Countries," Working Papers 2006-15, Centre de Recherche en Economie et Statistique.
   • Pierre Mohnen & Jacques Mairesse & Marcel Dagenais, 2006. "Innovativity: A Comparison Across Seven European Countries," NBER Working Papers 12280, National Bureau of Economic Research, Inc.
2. Filippetti, Andrea & Archibugi, Daniele, 2010. "Innovation in Times of Crisis: The Uneven Effects of the Economic Downturn across Europe," MPRA Paper 22084, University Library of Munich, Germany.
3. García-Quevedo, José & Pellegrino, Gabriele & Vivarelli, Marco, 2011. "R&D Drivers in Young Innovative Companies," IZA Discussion Papers 6136, Institute for the Study of Labor (IZA).
4. Arapoglou, Vassilis & Palaskas, Theodosios & Tsampra, Maria, 2001. "The impact of socio-economic inputs on rtd, innovativeness, and competitiveness of european and east asian smes: comparative analysis and policy suggestions for regional convergence," MPRA Paper 33565, University Library of Munich, Germany.
5. Angelo Reati & Jan Toporowski, 2009. "An economic policy for the fifth long wave," PSL Quarterly Review, Economia civile, vol. 62(248-251), pages 143-186.
   
   • Angelo Reati & Jan Toporowski, 2005. "An economic policy for the fifth long wave," GE, Growth, Math methods 0510008, EconWPA.
6. Piva, Mariacristina & Vivarelli, Marco, 2006. "Is Demand-Pulled Innovation Equally Important in Different Groups of Firms?," IZA Discussion Papers 1982, Institute for the Study of Labor (IZA).
   
   • Mariacristina Piva & Marco Vivarelli, 2007. "Is demand-pulled innovation equally important in different groups of firms?," Cambridge Journal of Economics, Oxford University Press, vol. 31(5), pages 691-710, September.
7. Barge-Gil, Andrés & López, Alberto, 2012. "R&D Determinants: accounting for the differences between research and development," MPRA Paper 41270, University Library of Munich, Germany.
8. Elina Seppä, 2007. "Innovation Performance of Firms in Manufacturing Industry: Evidence from Belgium, Finland and Germany in 1998-2000," Discussion Papers 414, Government Institute for Economic Research Finland (VATT).
9. D Harvie & M A Kelmanson & D G Knapp, 2007. "A Dynamical Model of Business-Cycle Asymmetries:Extending Goodwin," Economic Issues Journal Articles, Economic Issues, vol. 12(1), pages 53-92, March.
10. Heger, Diana, 2004. "The Link Between Firms? Innovation Decision and the Business Cycle: An Empirical Analysis," ZEW Discussion Papers 04-85, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
11. Mark Setterfield, 2003. "Supply and Demand in the Theory of Long-run Growth: Introduction to a symposium on demand-led growth," Review of Political Economy, Taylor and Francis Journals, vol. 15(1), pages 23-32.
12. Paul Isely & Gerald Simons, 2002. "Global Influences on U.S. Auto Innovation," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 11(1), pages 25-34.
13. Korkut Erturk, 2002. "Revisiting the Old Theory of Cyclical Growth: Harrod, Kaldor cum Schumpeter," Review of Political Economy, Taylor and Francis Journals, vol. 14(2), pages 179-192.
14. Marcel Dagenais & Pierre Mohnen, 2000. "Towards an Innovation Intensity Index: The Case of CIS 1 in Denmark and Ireland," CIRANO Working Papers 2000s-20, CIRANO.
15. César Alonso-Borrego & José I. Galán-Zazo & Francisco Javier Forcadell & José Ángel Zúñiga-Vicente, 2012. "Assessing the effect of public subsidies on firm R&D investment : a survey," Economics Working Papers we1215, Universidad Carlos III, Departamento de Economía.
16. José García-Quevedo & Gabriele Pellegrino & Marco Vivarelli, 2011. "The determinants of YICs’ R&Dactivity," Working Papers 2011/31, Institut d'Economia de Barcelona (IEB).
    
    • José García-Quevedo & Gabriele Pellegrino & Marco Vivarelli, 2011. "The determinants of YIc's R&D activity," Working Papers XREAP2011-20, Xarxa de Referència en Economia Aplicada (XREAP), revised Dec 2011.
17. Luuk Klomp & George Van Leeuwen, 2001. "Linking Innovation and Firm Performance: A New Approach," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 8(3), pages 343-364.

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