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Determinants of Innovation

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  • Mita Bhattacharya

    ()

  • Harry Bloch

Abstract

The study examines how firm size, market structure, profitability and growth influence innovative activity in small to medium sized Australian manufacturing businesses, using the recently released Confidentialised Unit Record File drawn from the Business Longitudinal Survey of the Australian Bureau of Statistics. Regression analysis is conducted to determine the factors that effect subsequent innovative activity for the full sample of businesses, as well as for sub-samples of firms from high and low-technological opportunity industries. Most variables, including size, R&D intensity, market structure and trade shares are found to be conducive to further innovative activity for the full sample and for high-tech firms. For low-tech industries, fewer variables are significant.

Suggested Citation

  • Mita Bhattacharya & Harry Bloch, 2004. "Determinants of Innovation," Small Business Economics, Springer, vol. 22(2), pages 155-162, March.
  • Handle: RePEc:kap:sbusec:v:22:y:2004:i:2:p:155-162
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    References listed on IDEAS

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    1. Tor J Klette & Samuel Kortum, 2004. "Innovating Firms: Evidence and Theory," Levine's Working Paper Archive 122247000000000475, David K. Levine.
    2. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
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