Market versus Corporate Structure in Plant-Level Innovation Performance
This paper examines the effect which market and corporate structure have on the extent of innovation for a sample of circa 300 manufacturing plants located in Scotland. Innovation is defined as the introduction of a commercially significant new product at the establishment level. The theoretical model of Geroski (1990) is extended to incorporate plant-level variables such as size, multiplant operation, the presence of R&D facilities and external/indigenous ownership. A distinction is made between the direct and indirect effects of these variables. Negative binomial estimations indicate that corporate structure influences are more important in determining the number of innovations than market structure and barrier to entry variables. Plant size, foreign ownership and the presence of R&D are all positively associated with innovation. Direct effects greatly outweigh indirect effects. Tobit estimations on the number of innovations per employee support the findings of Acs and Audretsch (1988) that smaller enterprises are more innovation intensive than larger enterprises, at least up to a limit of around 1,200 employees. The positive effect of R&D arises principally from increasing the probability of a plant becoming an innovator, rather than from making a plant more innovation intensive. By contrast, the importance of size lies principally in encouraging further innovations among plants which are already innovators, but less than proportionately with the increase in employment size. Copyright 1999 by Kluwer Academic Publishers
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
When requesting a correction, please mention this item's handle: RePEc:kap:sbusec:v:13:y:1999:i:2:p:97-109. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.