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Do Spillovers Stimulate Incremental or Drastic Product Innovations? Hypotheses and Evidence from German Establishment Data

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  • Jirjahn, Uwe
  • Kraft, Kornelius

Abstract

We estimate the determinants of various types of product innovation. Knowledge spillovers from rivals have a positive impact on incremental innovations. This impact is largely independent of the participation in R&D cooperations. Spillovers exert no such independent influence on drastic innovation activities. The results support the hypothesis that establishments face difficulties in using knowledge that comes from areas they are not familiar with. Establishments exploit spillovers for incremental innovations rather than for drastic innovations. To a limited degree R&D cooperations can help to overcome the difficulties in using spillovers for drastic innovations. Furthermore, our estimates provide evidence that a firm?s own R&D effort and the use of outside information are substitutive. --

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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 06-23.

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Date of creation: 2006
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Handle: RePEc:zbw:zewdip:4607

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Keywords: New Products; Patents; Spillovers; Learning; R&D;

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Citations

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Cited by:
  1. Schmiedeberg, Claudia, 2008. "Complementarities of innovation activities: An empirical analysis of the German manufacturing sector," Research Policy, Elsevier, Elsevier, vol. 37(9), pages 1492-1503, October.
  2. Birgit Schultz, 2006. "Mikrooekonometrische Evaluation der oekonomischen Wirkungen betrieblicher Mitbestimmung - Moeglichkeiten und Grenzen des Matching-Ansatzes," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 226(5), pages 519-536, September.
  3. Czarnitzki, Dirk & Kraft, Kornelius, 2008. "Mitarbeiteranreizsysteme und Innovationserfolg (Employee suggestion schemes and innovation success)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 245-258.
  4. Birgit Schultz, 2006. "Möglichkeiten und Grenzen des Matching-Ansatzes – am Beispiel der betrieblichen Mitbestimmung," IWH Discussion Papers, Halle Institute for Economic Research 15, Halle Institute for Economic Research.
  5. repec:iab:iabzaf:v:41:i:2/3:p:245-258 is not listed on IDEAS
  6. Nicole Torka & Jan Kees Looise & Stefan Zagelmeyer, 2011. "Ordinary Atypical Workers, Participation within the Firm and Innovation: A Theoretical Endeavor and Empirical Outlook," management revue. Socio-economic Studies, Rainer Hampp Verlag, Rainer Hampp Verlag, vol. 22(3), pages 221-239.

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