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Keynes-plus? Effective demand and changes in firm-level R&D: an empirical note

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Author Info
Brouwer, Erik (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)
Kleinknecht, Alfred

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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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Publisher 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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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 - - - Innovation and Invention: Processes and Incentives

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  1. Pierre Mohnen & Jacques Mairesse & Marcel Dagenais, 2006. "Innovativity: A Comparison Across Seven European Countries," CIRANO Working Papers 2006s-11, CIRANO. [Downloadable!]
    Other versions:
  2. Mariacristina Piva & Marco Vivarelli, 2006. "Is Demand-Pulled Innovation Equally Important in Different Groups of Firms?," IZA Discussion Papers 1982, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Alfred Kleinknecht & Remco Oostendorp & Menno Pradhan & C.W.M. Naastepad, 2006. "Flexible Labour, Firm Performance and the Dutch Job Creation Miracle," International Review of Applied Economics, Taylor and Francis Journals, vol. 20(2), pages 171-187, April. [Downloadable!] (restricted)
  4. Angelo Reati & Jan Toporowski, 2005. "An economic policy for the fifth long wave," GE, Growth, Math methods 0510008, EconWPA. [Downloadable!]
  5. Alfonso Palacio-Vera, 2005. "Liquidity and growth traps: a framework for the analysis of macroeconomic policy in the 'age' of Central Banks," Documentos de trabajo de la Facultad de Ciencias Económicas y Empresariales 05-02, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales. [Downloadable!]
  6. 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, November. [Downloadable!] (restricted)
  7. 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). [Downloadable!]
  8. 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. [Downloadable!]
  9. 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, January. [Downloadable!] (restricted)
  10. Paul N. Isely & Gerald P.W. 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, January. [Downloadable!] (restricted)
  11. Korkut A. Ertürk, 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, April. [Downloadable!] (restricted)
  12. 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. [Downloadable!]
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