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Market Structure and Innovation Races / Marktstruktur und Innovationsrennen: An Empirical Assessment Using Indirect Inference / Eine empirische Untersuchung mit Hilfe der indirekten Schätzmethode

Author

Listed:
  • Kukuk Martin

    (Lehrstuhl für Ökonometrie, Universität Würzburg, Sanderring 2,D-97070, Würzburg, Germany)

  • Stadler Manfred

    (Lehrstuhl für Volkswirtschaftslehre, Eberhard Karls UniversitätTübingen, Mohlstr. 36, D-72074 Tübingen, Germany)

Abstract

Based on an extended game-theoretic innovation-race model, we derive some Schumpeterian hypotheses of the impact of technological rivalry, market power, technological opportunities and demand expectations on the timing of product and process innovations. Using innovation data at the firm level in the German industrial sector, we estimate various versions of an econometric specification of the model with dichotomous innovation data by using a univariate binary probit model with qualitative regressor variables estimated applying indirect inference. Our empirical results are consistent with the derived hypotheses that intense rivalry, favorable technological opportunities and high demand expectations spur innovative activity, while the effect of market power is ambiguous.

Suggested Citation

  • Kukuk Martin & Stadler Manfred, 2005. "Market Structure and Innovation Races / Marktstruktur und Innovationsrennen: An Empirical Assessment Using Indirect Inference / Eine empirische Untersuchung mit Hilfe der indirekten Schätzmethode," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 225(4), pages 427-440, August.
    • Handle: RePEc:jns:jbstat:v:225:y:2005:i:4:p:427-440
    DOI: 10.1515/jbnst-2005-0405
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    References listed on IDEAS

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    Cited by:

    1. Agnes Bäker & Werner Güth & Kerstin Pull & Manfred Stadler, 2011. "Creativity, Analytical Skills, Personality Traits, and Innovation Game Behavior in the Lab: An Experiment," Jena Economics Research Papers 2011-056, Friedrich-Schiller-University Jena.
    2. Güth, Werner & Pull, Kerstin & Stadler, Manfred, 2012. "Creativity, analytical skills, personality traits, and innovative capability: A lab experiment," University of Tübingen Working Papers in Business and Economics 44, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.
    3. Aschhoff, B. & Crass, D. & Doherr, T. & Hud, M. & Hünermund, P. & Iferd, Y. & Köhler, C. & Peters, B. & Rammer, C. & Schubert, T. & Schwiebacher, F., 2014. "Dokumentation zur Innovationserhebung 2013," ZEW Dokumentationen 14-01, ZEW - Leibniz Centre for European Economic Research.

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