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Selection bias in innovation studies: a simple test

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  • de Rassenfosse, G.
  • Wastyn, Annelies

Abstract

The study of the innovative output of firms often relies on a count of patents filed at one single office of reference such as the European Patent Office (EPO). Yet, not all firms file their patents at the EPO, raising the specter of a selection bias. Using a novel dataset of the whole population of patents by Belgian firms, we show that the singleoffice count results in a selection bias that affects econometric estimates of innovation production functions. We propose a methodology to evaluate whether estimates that rely on the singleoffice count are affected by a selection bias.

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Paper provided by Katholieke Universiteit Leuven in its series Open Access publications from Katholieke Universiteit Leuven with number urn:hdl:123456789/333800.

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Length: 25 pages
Date of creation: Jan 2012
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Handle: RePEc:ner:leuven:urn:hdl:123456789/333800

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Keywords: innovation production function; patent; R&D; selection bias;

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References

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  1. Michele Cincera, 1997. "Patents, R&D and technological spillovers at the firm level: some evidence from econometric count models for panel data," ULB Institutional Repository 2013/851, ULB -- Universite Libre de Bruxelles.
  2. Juan A. Correa, 2012. "Innovation and competition: An unstable relationship," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 27(1), pages 160-166, 01.
  3. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
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  7. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  8. Dirk Czarnitzki & Bernd Ebersberger & Andreas Fier, 2007. "The relationship between R&D collaboration, subsidies and R&D performance: Empirical evidence from Finland and Germany," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1347-1366.
  9. repec:fth:harver:1473 is not listed on IDEAS
  10. Saul Lach & Mark Schankerman, 2006. "Incentives and Invention in Universities," CEP Discussion Papers dp0729, Centre for Economic Performance, LSE.
  11. Philippe Aghion & Nicholas Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2002. "Competition and innovation: an inverted U relationship," IFS Working Papers W02/04, Institute for Fiscal Studies.
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  13. Leslie E. Papke & Jeffrey M. Wooldridge, 1993. "Econometric Methods for Fractional Response Variables with an Application to 401(k) Plan Participation Rates," NBER Technical Working Papers 0147, National Bureau of Economic Research, Inc.
  14. 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, Wiley Blackwell, vol. 66(3), pages 529-54, July.
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