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Do Organizational Forms matter? – An Econometric Analysis of Innovativeness in the German Wastewater Sector

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  • Harald Tauchmann

    ()

  • Hartmut Clausen

Abstract

In the German wastewater sector, innovations are often regarded to be the key to both more efficient service provision and reduction of environmental and health-related problems. However, it is unclear what factors foster these innovations. One possible candidate factor is increased competition in this sector and the entry of private service providers. So far, there is no empirical evidence to answer the question of whether private firms are, in fact, more innovative than others. To address this question, we conducted a survey among German firms that provide wastewater services and estimated a structural model to explain firms’ innovativeness. Our results suggest that firm size improves innovativeness; however, private service providers are not significantly more innovative than providers operated by local governments.We conclude that restructuring the sector to form larger units may foster innovative activities even without any changes in the legal framework.

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Bibliographic Info

Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung in its series RWI Discussion Papers with number 0022.

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Length: 23 pages
Date of creation: Nov 2004
Date of revision:
Handle: RePEc:rwi:dpaper:0022

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Related research

Keywords: Wastewater services; innovativeness; structural econometric model;

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References

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  1. Ralf Boscheck, 2002. "European water infrastructures: Regulatory flux void of reference?," Intereconomics: Review of European Economic Policy, Springer, vol. 37(3), pages 138-149, May.
  2. Fertig, Michael & Schmidt, Christoph M., 2002. "The Perception of Foreigners and Jews in Germany - A Structural Analysis of a Large Opinion Survey," IZA Discussion Papers 431, Institute for the Study of Labor (IZA).
  3. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: An Inverted-U Relationship," The Quarterly Journal of Economics, MIT Press, vol. 120(2), pages 701-728, May.
  4. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
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Cited by:
  1. Peter Haug, 2007. "Local Government Control and Efficiency of the Water Industry: An Empirical Analysis of Water Suppliers in East Germany," IWH Discussion Papers 3, Halle Institute for Economic Research.

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