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Is innovation persistent at the firm Level . An econometric examination comparing the propensity score and regression methods

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Author Info
Emmanuel Duguet () (Université de Bretagne et EUREQua)
Stéphanie Monjon () (EUREQua)

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Abstract

At the macroeconomic level, the persistence of technological change allows sustainable growth. But do the innovations come from the same set of firms or from a continuous renewal of innovators? On this point, the assumptions underlying the endogenous growth models differ and innovation persistence at the macroeconomic level can be supported by different firm-level behavioural assumptions. The aim of this article is threefold. Firstly, we evaluate a measure of the degree of innovation persistence at the firm level. Secondly, we analyze the factors underpinning the innovation persistence by testing the theoretical explanations that have been proposed in the literature. Lastly, we examine the robustness of the standard econometric methods used in innovation economics. We show that the persistence of innovation is strong at the firm level and that the right theoretical modelling depends on the size of the firm. While the small firms reveals strong learning-by-doing effects in the production of innovation, the persistence of innovation in the large firms relies on the persistence of formal research and development investments.

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Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number v04075.

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Length: 36 pages
Date of creation: Jul 2004
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Handle: RePEc:mse:wpsorb:v04075

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Related research
Keywords: Community innovation surveys creative destruction innovation learning-by-doing matching persistence propensity score research and development.

Find related papers by JEL classification:
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D

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  1. Socio-Economics of Innovation
References listed on IDEAS
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.:
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Full references

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. Bettina Peters, 2005. "Persistence of Innovation: Stylised Facts and Panel Data Evidence," Development and Comp Systems 0511021, EconWPA. [Downloadable!]
    Other versions:
  2. Stéphane Lhuillery & Fabrice Galia, 2006. "The R&D kiss of death: Empirical evidences on failed cooperation," CEMI Working Papers cemi-report-2006-005, Ecole Polytechnique Fédérale de Lausanne, Chaire en Economie et Management de l'Innovation.
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