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Understanding Innovative Firms: An Empirical Analysis of the GAPS

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Author Info
Mark Rogers (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

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Abstract

This paper uses data from the Growth and Performance Survey of Australian firms to investigate the determinants of innovation. The measure of innovation is based on whether the firm introduced a new product or process in 1997. Various determinants are investigated including market structure, export status, the use of networks, and training. Regression analysis is conducted separately for manufacturing and non- manufacturing firms, and within each sector by firm size groups. Overall, the results show there is persistence in innovative activities (i.e. firms that innovated in 1995 are more likely to innovation in 1997); small manufacturing firms which use networks tend to be more innovative; and medium sized manufacturing firms that export are also more innovative. However, the main conclusion of the analysis is that many of the explanatory variables are not significant. Moreover, the results vary dramatically across firm size and sector, suggesting that the process of innovation is complex.

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Publisher Info
Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2000n08.

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Length: 27 pages
Date of creation: May 2000
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Handle: RePEc:iae:iaewps:wp2000n08

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Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Den Hertog, R.G.J. & Thurik, A.R., 1992. "Determinants of Large-and Small-Firm Innovation: Some New Evidence," Papers 9238-a, Erasmus University of Rotterdam - Econometric Institute.
  2. Love, J.H. & Roper, S., 1997. "The Determinants of Innovation: R&D, Technology Transfer and Networking Effects," Working Papers NIERC. 31, Economic Research Institute of Northern Ireland.
    Other versions:
  3. Blundell, Richard & Griffith, Rachel & van Reenen, John, 1999. "Market Share, Market Value and Innovation in a Panel of British Manufacturing Firms," Review of Economic Studies, Blackwell Publishing, vol. 66(3), pages 529-54, July. [Downloadable!] (restricted)
  4. Audretsch, David B & Vivarelli, Marco, 1994. "Small Firms and R&D Spillovers: Evidence from Italy," CEPR Discussion Papers 927, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  5. Blundell, Richard & Griffith, Rachel & Van Reenen, John, 1995. "Dynamic Count Data Models of Technological Innovation," Economic Journal, Royal Economic Society, vol. 105(429), pages 333-44, March. [Downloadable!] (restricted)
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  6. Lefebvre, Elisabeth & Lefebvre, Louis A & Bourgault, Mario, 1998. " R&D-Related Capabilities as Determinants of Export Performance," Small Business Economics, Springer, vol. 10(4), pages 365-77, June. [Downloadable!] (restricted)
  7. Acs, Zoltan J. & Audretsch, David B., 1987. "Innovation in large and small firms," Economics Letters, Elsevier, vol. 23(1), pages 109-112. [Downloadable!] (restricted)
  8. Bishop, Paul & Wiseman, Nick, 1999. "External Ownership and Innovation in the United Kingdom," Applied Economics, Taylor and Francis Journals, vol. 31(4), pages 443-50, April. [Downloadable!] (restricted)
  9. Van Dijk, Bob, et al, 1997. " Some New Evidence on the Determinants of Large- and Small-Firm Innovation," Small Business Economics, Springer, vol. 9(4), pages 335-43, August. [Downloadable!] (restricted)
  10. Karlsson, Charlie & Olsson, Ola, 1998. " Product Innovation in Small and Large Enterprises," Small Business Economics, Springer, vol. 10(1), pages 31-46, February. [Downloadable!] (restricted)
  11. Love, James H & Ashcroft, Brian & Dunlop, Stewart, 1996. "Corporate Structure, Ownership and the Likelihood of Innovation," Applied Economics, Taylor and Francis Journals, vol. 28(6), pages 737-46, June. [Downloadable!] (restricted)
  12. Freeman, C., 1991. "Networks of innovators: A synthesis of research issues," Research Policy, Elsevier, vol. 20(5), pages 499-514, October. [Downloadable!] (restricted)
  13. Feldman, Maryann P, 1994. " Knowledge Complementarity and Innovation," Small Business Economics, Springer, vol. 6(5), pages 363-72, October.
  14. George Symeonidis, 1996. "Innovation, Firm Size and Market Structure: Schumpeterian Hypotheses and Some New Themes," OECD Economics Department Working Papers 161, OECD, Economics Department. [Downloadable!]
  15. Cohen, Wesley M. & Levin, Richard C., 1989. "Empirical studies of innovation and market structure," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 18, pages 1059-1107 Elsevier. [Downloadable!] (restricted)
  16. Drago, Robert & Wooden, Mark, 1994. "Unions, Innovation and Investment: Australian Evidence," Applied Economics, Taylor and Francis Journals, vol. 26(6), pages 609-15, June.
  17. Arvanitis, Spyros, 1997. " The Impact of Firm Size on Innovative Activity--An Empirical Analysis Based on Swiss Firm Data," Small Business Economics, Springer, vol. 9(6), pages 473-90, December. [Downloadable!] (restricted)
  18. Tether, B. S., 1998. "Small and large firms: sources of unequal innovations?," Research Policy, Elsevier, vol. 27(7), pages 725-745, November. [Downloadable!] (restricted)
  19. Mark Rogers, 2002. "The Influence of Diversification and Market Structure on the R&D Intensity of Large Australian Firms," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(2), pages 155-172. [Downloadable!] (restricted)
  20. Almeida, Paul & Kogut, Bruce, 1997. " The Exploration of Technological Diversity and the Geographic Localization of Innovation," Small Business Economics, Springer, vol. 9(1), pages 21-31, February. [Downloadable!] (restricted)
  21. Acemoglu, Daron, 1997. "Training and Innovation in an Imperfect Labour Market," Review of Economic Studies, Blackwell Publishing, vol. 64(3), pages 445-64, July. [Downloadable!] (restricted)
  22. Natalia Nunes & Geoffrey Crockett & Peter Dawkins, 1993. "The Impact of Competition and Trade Unions on Workplace Reform and Organisational and Technological Change," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 26(2), pages 71-88. [Downloadable!] (restricted)
  23. Sako, Mari, 1999. "From Individual Skills to Organizational Capability in Japan," Oxford Review of Economic Policy, Oxford University Press, vol. 15(1), pages 114-26, Spring.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Craig Lofts & Joanne Loundes, 2000. "Foreign Ownership, Foreign Competition and Innovation in Australian Enterprises," Melbourne Institute Working Paper Series wp2000n20, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
  2. Dhamvithee, Pisit & Shankar, Bhavani & Jangchud, Anuvat & Wuttijumnong, Phaisarn, 2005. "New Product Development in Thai Agro-Industry: Explaining the Rates of Innovation and Success in Innovation," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 8(03). [Downloadable!]
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