Do organizational forms matter? Innovation and liberalization in the German wastewater sector
In the German wastewater sector, innovations are often regarded to be the key to better service provision. Our focus is on the question of whether less direct control by the authorities does improve the innovativeness of providers of wastewater services. On the basis of data from a survey among German service providers a structural model explaining firms' innovativeness is estimated. Estimation results suggest that firm size improves in novativeness; however, the organizational arrangement, i.e. the legal dependency on municipalities does not. We conclude that reforms directed towards increased legal autonomy have only limited effects on innovations if not accompanied by market liberalization.
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- Wu, Hsueh-Liang, 2006. "The policy-fit view on the efficiency effects of privatization," Journal of Policy Modeling, Elsevier, vol. 28(3), pages 281-292, April.
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- Philippe Aghion & Nicholas Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2002. "Competition and Innovation: An Inverted U Relationship," NBER Working Papers 9269, National Bureau of Economic Research, Inc.
- Philippe Aghion & Nicholas Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2002. "Competition and innovation: an inverted U relationship," IFS Working Papers W02/04, Institute for Fiscal Studies.
- Howitt, Peter & Griffith, Rachel & Aghion, Philippe & Blundell, Richard & Bloom, Nick, 2005. "Competition and Innovation: An Inverted-U Relationship," Scholarly Articles 4481507, Harvard University Department of Economics.
- Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
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