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Innovation Performance of Firms in Manufacturing Industry: Evidence from Belgium, Finland and Germany in 1998-2000

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  • Seppä, Elina

Abstract

The objective of this study is to study whether the R&D expenditures in Finnish firms generate better innovation output than in Belgian and German firms following the studies of Mohnen et al. (2006) and Mohnen and Dagenais (2001) and using CIS 3 data on manufacturing firms in 1998–2000. First, we use generalised tobit model to scrutinise what factors impact the firm's propensity to innovate and the amount of innovation output, the share of sales in innovative products. Second, we construct an innovation indicator based on the estimates of pooled regression and compare the expected innovation output to the observed innovation output in sample countries and industries. We find that innovativeness is overall largest in Germany whereas the results of Belgium and Finland are nearly equal. The most surprising country differences are found in the effects of public funding, which do not have any significant impact on innovation output in Finland, have a negative impact in Belgium and positive in Germany.

Suggested Citation

  • Seppä, Elina, 2007. "Innovation Performance of Firms in Manufacturing Industry: Evidence from Belgium, Finland and Germany in 1998-2000," Discussion Papers 414, VATT Institute for Economic Research.
    • Handle: RePEc:fer:dpaper:414
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    File URL: https://www.doria.fi/handle/10024/148398
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    References listed on IDEAS

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    1. Jacques Mairesse & Pierre Mohnen, 2005. "The Importance of R&D for Innovation: A Reassessment Using French Survey Data," The Journal of Technology Transfer, Springer, vol. 30(2_2), pages 183-197, January.
    2. Brouwer, Erik & Kleinknecht, Alfred, 1999. "Keynes-Plus? Effective Demand and Changes in Firm-Level R&D: An Empirical Note," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 23(3), pages 385-391, May.
    3. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
    4. Jacques Mairesse & Pierre Mohnen, 2002. "Accounting for Innovation and Measuring Innovativeness: An Illustrative Framework and an Application," American Economic Review, American Economic Association, vol. 92(2), pages 226-230, May.
    5. Pierre Mohnen & Jacques Mairesse & Marcel Dagenais, 2006. "Innovativity: A comparison across seven European countries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 391-413.
    6. Jacques Mairesse & Pierre Mohnen, 2001. "To Be or Not To Be Innovative: An Exercise in Measurement," NBER Working Papers 8644, National Bureau of Economic Research, Inc.
    7. Maria Laura Parisi & Fabio Schiantarelli & Alessandro Sembenelli, 2002. "Productivity, Innovation Creation and Absorption, and R&D: Micro Evidence for Italy," Boston College Working Papers in Economics 526, Boston College Department of Economics.
    8. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    9. Pierre Mohnen & Marcel Dagenais, 2002. "Towards an Innovation Intensity Index: The Case of CIS 1 in Denmark and Ireland," Palgrave Macmillan Books, in: Alfred Kleinknecht & Pierre Mohnen (ed.), Innovation and Firm Performance, chapter 1, pages 3-30, Palgrave Macmillan.
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    13. repec:crs:wpaper:9833 is not listed on IDEAS
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    Keywords

    Innovation; RD; CIS; innovativeness; productivity; innovation and technology policy; Economic growth; Taloudellinen kasvu; International comparisons; Kansainväliset vertailut; Taxation and Social Transfers; Julkisen talouden rahoitus ja tulonsiirrot;
    All these keywords.

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    1. Socio-Economics of Innovation

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