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Do organizational forms matter? Innovation and liberalization in the German wastewater sector


  • Tauchmann, Harald
  • Clausen, Hartmut
  • Oelmann, Mark


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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  • Tauchmann, Harald & Clausen, Hartmut & Oelmann, Mark, 2009. "Do organizational forms matter? Innovation and liberalization in the German wastewater sector," Journal of Policy Modeling, Elsevier, vol. 31(6), pages 863-876, November.
  • Handle: RePEc:eee:jpolmo:v:31:y:2009:i:6:p:863-876

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    References listed on IDEAS

    1. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, Oxford University Press, vol. 120(2), pages 701-728.
    2. 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.
    3. 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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    Cited by:

    1. Ruiz-Villaverde, Alberto & Picazo-Tadeo, Andrés J. & González-Gómez, Francisco, 2015. "The ‘social choice’ of privatising urban water services: A case study of Madrid in Spain," Journal of Policy Modeling, Elsevier, vol. 37(4), pages 616-629.
    2. Boardman, Anthony E. & Vining, Aidan R. & Weimer, David L., 2016. "The long-run effects of privatization on productivity: Evidence from Canada," Journal of Policy Modeling, Elsevier, vol. 38(6), pages 1001-1017.


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