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Windows of technological opportunity: do technological booms influence the relationship between firm size and innovativeness?

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  • Degner, Harald
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    Abstract

    Many papers have been written about the effect of firm size on innovativeness, revealing a positive, a negative or a mixed impact. To this day, the so-called Schumpeterian hypothesis of the above-average innovativeness of large firms has been neither confirmed nor rejected, often because of insufficient data or a too-short observation period. Many studies concentrate only on a specific region or a specific sector, or they analyze a very short time period. Windows of technological opportunities, providing technological booms for both firms and sectors, have not yet been investigated. An analysis of Germany’s chemical, metal and electronic-engineering sectors between 1877 and 1932 reveals that the sector-specific long-term relationship between firm size and innovativeness is negative, except during times of specific technological booms. In combination with firm-specific characteristics, this new aspect can contribute to a better understanding of the long-term relationship between firm size and innovativeness. --

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    Bibliographic Info

    Paper provided by University of Hohenheim, Center for Research on Innovation and Services (FZID) in its series FZID Discussion Papers with number 15-2010.

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    Date of creation: 2010
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    Handle: RePEc:zbw:fziddp:152010

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    Keywords: Effect of firm size on innovativeness; technological boom; Schumpeterian hypothesis;

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