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Innovation over the industry life-cycle: Evidence from EU manufacturing

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  • Bos, Jaap W.B.
  • Economidou, Claire
  • Sanders, Mark W.J.L.

Abstract

Empirical research has revealed some regularities regarding the innovation that takes place over the industry life-cycle. First, innovation is high when an industry is young and low when the industry matures, and second, product innovation decreases with industry maturity, while process innovation increases. The implications of these regularities are profound, but evidence is to date largely case based and it is hard to generalize and draw policy conclusions. We use a flexible measure of maturity and a novel modeling approach to investigate innovation patterns for 21 European manufacturing industries. Our results strongly support both assertions and lend support to life-cycle based R&D-policy.

Suggested Citation

  • Bos, Jaap W.B. & Economidou, Claire & Sanders, Mark W.J.L., 2013. "Innovation over the industry life-cycle: Evidence from EU manufacturing," Journal of Economic Behavior & Organization, Elsevier, vol. 86(C), pages 78-91.
  • Handle: RePEc:eee:jeborg:v:86:y:2013:i:c:p:78-91
    DOI: 10.1016/j.jebo.2012.12.025
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    References listed on IDEAS

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    Cited by:

    1. Bondarev, Anton & Greiner, Alfred, 2017. "Catching-up and falling behind: Effects of learning in an R&D differential game with spillovers," Working papers 2017/02, Faculty of Business and Economics - University of Basel.
    2. Keeran Kowlaser & Helena Barnard, 2016. "Tie Breadth, Tie Strength And The Location Of Ties: The Value Of Ties Inside An Emerging Mnc To Team Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(01), pages 1-31, January.
    3. repec:eee:techno:v:64-65:y:2017:i::p:16-27 is not listed on IDEAS
    4. Anton Bondarev, 2016. "Intensity of R&D competition and the generation of innovations in heterogeneous setting," Journal of Evolutionary Economics, Springer, vol. 26(3), pages 621-653, July.
    5. repec:spr:joevec:v:27:y:2017:i:3:d:10.1007_s00191-016-0481-5 is not listed on IDEAS
    6. repec:wsi:ijitmx:v:14:y:2017:i:06:n:s0219877017500407 is not listed on IDEAS
    7. Fabio Pieri & Michela Vecchi & Francesco Venturini, 2017. "Modelling the joint impact of R and D and ICT on productivity: A frontier analysis approach," DEM Working Papers 2017/13, Department of Economics and Management.
    8. Fontana, Roberto & Vezzulli, Andrea, 2016. "Technological leadership and persistence in product innovation in the Local Area Network industry 1990–1999," Research Policy, Elsevier, vol. 45(8), pages 1604-1619.

    More about this item

    Keywords

    Growth; Life-cycle; Innovation; Stochastic frontier analysis; Manufacturing industries;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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