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The Commercial Success of Innovations: an Econometric Analysis at the Firm Lebel in French Manufacturing

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  • Corinne Barlet
  • Emmanuel Duguet
  • David Encaoua
  • Jacqueline Pradel

Abstract

This paper offers some empirical evidence on how do product and process innovations affect manufacturing sales and exports. Accounting for differences in technological opportunities between industries, and the "market pull" or "technology push" nature of firms' innovations, we explain the share of new products in total sales and exports by the innovation types firms have implemented. The data come from the French Ministry of Industry's Innovation survey 1986-1990. The left-hand variables are the sales revenues and the export revenues of the firms that are attibutable to products introduced within the last 5 years. Given that the survey reports only interval data, our estimates were obtained by maximum likelihood on the ordred probit model. The following results are obtained: (i) The contribution of products less than 5 years old is lower to overall exports than to total sales but the innovative content is stronger in exports than in domestic sales; (ii) The greater the underlying technological opportunities, the less successful are product imitations; (iii) Both domestic sales and exports are mostly made of product improvements; (iv) Firm size has a positive effect on innovation output only when the technological opportunity is strong.

Suggested Citation

  • Corinne Barlet & Emmanuel Duguet & David Encaoua & Jacqueline Pradel, 1998. "The Commercial Success of Innovations: an Econometric Analysis at the Firm Lebel in French Manufacturing," Annals of Economics and Statistics, GENES, issue 49-50, pages 457-478.
    • Handle: RePEc:adr:anecst:y:1998:i:49-50:p:457-478
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    Cited by:

    1. Emmanuel Duguet, 2006. "Innovation height, spillovers and tfp growth at the firm level: Evidence from French manufacturing," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 415-442.
    2. Daiya Isogawa & Kohei Nishikawa & Hiroshi Ohashi, 2015. "Innovation Height and Firm Performance:Using Innovation Survey from Japan," CIRJE F-Series CIRJE-F-956, CIRJE, Faculty of Economics, University of Tokyo.
    3. Frederique Savignac, 2008. "Impact Of Financial Constraints On Innovation: What Can Be Learned From A Direct Measure?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(6), pages 553-569.
    4. Gabriele Pellegrino & Mariacristina Piva & Marco Vivarelli, 2015. "How do new entrepreneurs innovate?," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(3), pages 323-341, September.
    5. George Saridakis & Anne-Marie Mohammed & Sandra Sookram, 2015. "Does Crime Affect Firm Innovation? Evidence from Trinidad and Tobago," Economics Bulletin, AccessEcon, vol. 35(2), pages 1205-1215.
    6. Marco Cucculelli, 2018. "Firm age and the probability of product innovation. Do CEO tenure and product tenure matter?," Journal of Evolutionary Economics, Springer, vol. 28(1), pages 153-179, January.
    7. Hans Loof & Almas Heshmati, 2006. "On the relationship between innovation and performance: A sensitivity analysis," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 317-344.
    8. Gabriele Pellegrino & Mariacristina Piva & Marco Vivarelli, 2009. "How do young innovative companies innovate?," Jena Economics Research Papers 2009-055, Friedrich-Schiller-University Jena.
    9. Mariacristina Piva & Marco Vivarelli, 2007. "Is demand-pulled innovation equally important in different groups of firms?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 31(5), pages 691-710, September.
    10. William R. Latham & Christian Le Bas, 2005. " Persistence of Firm Innovative Behavior: Towards an Evolutionary Theory," Working Papers 05-14, University of Delaware, Department of Economics.
    11. Marco Corsino, 2008. "Product Innovation and Growth: The Case of Integrated Circuits," ROCK Working Papers 047, Department of Computer and Management Sciences, University of Trento, Italy, revised 23 Jun 2008.
    12. Frédérique Savignac, 2006. "The impact of financial constraints on innovation: evidence from french manufacturing firms," Cahiers de la Maison des Sciences Economiques v06042, Université Panthéon-Sorbonne (Paris 1).
    13. Andrea Conte & Marco Vivarelli, 2014. "Succeeding in innovation: key insights on the role of R&D and technological acquisition drawn from company data," Empirical Economics, Springer, vol. 47(4), pages 1317-1340, December.
    14. Emmanuel Duguet & Stéphanie Monjon, 2004. "Is innovation persistent at the firm Level. An econometric examination comparing the propensity score and regression methods," Cahiers de la Maison des Sciences Economiques v04075, Université Panthéon-Sorbonne (Paris 1).
    15. André Dumas TSAMBOU & Nicolae BIBU, 2017. "A Comparative Analysis of the Determinants of Innovation Behaviour Between Cameroon, Cote d'Ivoire and Senegal," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 18(3), pages 234-259, July.
    16. Isogawa, Daiya & Nishikawa, Kohei & Ohashi, Hiroshi, 2015. "Innovation Height and Firm Performance: An Empirical Analysis from the Community Innovation Survey," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 37(1), pages 44-72.
    17. ISOGAWA Daiya & NISHIKAWA Kohei & OHASHI Hiroshi, 2012. "New-to-Market Product Innovation and Firm Performance: Evidence from a firm-level innovation survey in Japan," Discussion papers 12077, Research Institute of Economy, Trade and Industry (RIETI).
    18. Bruno Crépon & Emmanuel Duguet & Jacques Mairesse, 2000. "Mesurer le rendement de l'innovation," Économie et Statistique, Programme National Persée, vol. 334(1), pages 65-78.

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