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Do technological booms matter? New evidence on the relationship between firm size and innovativeness

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  • Harald Degner

    (University of Hohenheim, Stuttgart, Germany)

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 neither been confirmed nor rejected, often because of insufficient data or a too-short observation period. Many studies concentrate only on a specific region or 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 electrical-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.

Suggested Citation

  • Harald Degner, 2011. "Do technological booms matter? New evidence on the relationship between firm size and innovativeness," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 5(2), pages 121-144, June.
    • Handle: RePEc:afc:cliome:v:5:y:2011:i:2:p:121-144
    DOI: 10.1007/s11698-010-0054-z
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    More about this item

    Keywords

    Innovation; Firm Size; Technology; Patents;
    All these keywords.

    JEL classification:

    • N73 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: Pre-1913
    • N74 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: 1913-
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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