IDEAS home Printed from https://ideas.repec.org/a/spr/snbeco/v2y2022i8d10.1007_s43546-022-00257-8.html
   My bibliography  Save this article

Revisiting varieties of capitalism: an empirical analysis of the institutional determinants of innovation in Germany

Author

Listed:
  • Daniel Herrero

    (Complutense Institute of International Studies (ICEI)
    Complutense University of Madrid)

  • Julián López-Gallego

    (Complutense Institute of International Studies (ICEI))

Abstract

This paper applies the varieties of capitalism (VoC) theory of innovation to a country-case study: Germany. Drawing on a firm-level data set, the article measures the joint impact of a set of coordinated institutions—regarding the four institutional arenas highlighted by VoC—on incremental, radical, process innovation and imitations. Furthermore, to properly assess the effect of institutions, the probability to innovate is calculated across industries, export status and firm sizes. Evidence from logit modelling points to the crucial role of the selected group of institutions for all types of innovation, suggesting that the main road to innovation in Germany is a non-market corporate strategy, and that the VoC approach might be renewed.

Suggested Citation

  • Daniel Herrero & Julián López-Gallego, 2022. "Revisiting varieties of capitalism: an empirical analysis of the institutional determinants of innovation in Germany," SN Business & Economics, Springer, vol. 2(8), pages 1-31, August.
    • Handle: RePEc:spr:snbeco:v:2:y:2022:i:8:d:10.1007_s43546-022-00257-8
    DOI: 10.1007/s43546-022-00257-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43546-022-00257-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s43546-022-00257-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Robert Boyer, 2005. "How and why capitalisms differ," Post-Print halshs-00754052, HAL.
    2. John T. Addison & Paulino Teixeira & Katalin Evers & Lutz Bellmann, 2017. "Collective Bargaining and Innovation in Germany: A Case of Cooperative Industrial Relations?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(1), pages 73-121, January.
    3. Boyer, Robert, 2005. "How and Why Capitalisms Differ," MPIfG Discussion Paper 05/4, Max Planck Institute for the Study of Societies.
    4. Gregory Jackson & Richard Deeg, 2008. "Comparing capitalisms: understanding institutional diversity and its implications for international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(4), pages 540-561, June.
    5. Robert Boyer, 2005. "How and why capitalisms differ," Post-Print hal-00812971, HAL.
    6. Taylor, Mark Zachary, 2004. "Empirical Evidence Against Varieties of Capitalism's Theory of Technological Innovation," International Organization, Cambridge University Press, vol. 58(3), pages 601-631, July.
    7. Thelen,Kathleen, 2014. "Varieties of Liberalization and the New Politics of Social Solidarity," Cambridge Books, Cambridge University Press, number 9781107679566, January.
    8. Hall, Peter A. & Gingerich, Daniel W., 2009. "Varieties of Capitalism and Institutional Complementarities in the Political Economy: An Empirical Analysis," British Journal of Political Science, Cambridge University Press, vol. 39(3), pages 449-482, July.
    9. Matthew M.C. Allen & Heinz-Josef Tüselmann & Maria L. Aldred, 2011. "Institutional frameworks and radical innovation: an analysis of high- and medium-high-technology industries in Germany," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 7(4/5/6), pages 265-281.
    10. Kornelius Kraft & Jörg Stank & Ralf Dewenter, 2011. "Co-determination and innovation," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 35(1), pages 145-172.
    11. Michael A. Witt & Gregory Jackson, 2016. "Varieties of Capitalism and institutional comparative advantage: A test and reinterpretation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(7), pages 778-806, September.
    12. Thelen,Kathleen, 2014. "Varieties of Liberalization and the New Politics of Social Solidarity," Cambridge Books, Cambridge University Press, number 9781107053168, January.
    13. Amable, Bruno, 2003. "The Diversity of Modern Capitalism," OUP Catalogue, Oxford University Press, number 9780199261147.
    14. Mark Rogers, 2004. "Networks, Firm Size and Innovation," Small Business Economics, Springer, vol. 22(2), pages 141-153, March.
    15. Martin R Schneider & Conrad Schulze-Bentrop & Mihai Paunescu, 2010. "Mapping the institutional capital of high-tech firms: A fuzzy-set analysis of capitalist variety and export performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 246-266, February.
    16. Anke Hassel, 2014. "The Paradox of Liberalization — Understanding Dualism and the Recovery of the German Political Economy," British Journal of Industrial Relations, London School of Economics, vol. 52(1), pages 57-81, March.
    17. Cohen, Wesley M & Klepper, Steven, 1996. "Firm Size and the Nature of Innovation within Industries: The Case of Process and Product R&D," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 232-243, May.
    18. Fernando Galindo-Rueda & Fabien Verger, 2016. "OECD Taxonomy of Economic Activities Based on R&D Intensity," OECD Science, Technology and Industry Working Papers 2016/4, OECD Publishing.
    19. Pla-Barber, José & Alegre, Joaquín, 2007. "Analysing the link between export intensity, innovation and firm size in a science-based industry," International Business Review, Elsevier, vol. 16(3), pages 275-293, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Reale, Filippo, 2019. "Governing innovation systems: A Parsonian social systems perspective," Technology in Society, Elsevier, vol. 59(C).
    2. Michael A. Witt & Gregory Jackson, 2016. "Varieties of Capitalism and institutional comparative advantage: A test and reinterpretation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(7), pages 778-806, September.
    3. Carney, Michael & Shapiro, Daniel & Estrin, Saul & Liang, Zhixiang, 2018. "National institutional systems, foreign ownership and firm performance: the case of understudied countries," LSE Research Online Documents on Economics 87042, London School of Economics and Political Science, LSE Library.
    4. Schneider, Martin R., 2021. "Labor-Management Relations and Varieties of Capitalism," GLO Discussion Paper Series 934, Global Labor Organization (GLO).
    5. Fainshmidt, Stav & Judge, William Q. & Aguilera, Ruth V. & Smith, Adam, 2018. "Varieties of institutional systems: A contextual taxonomy of understudied countries," Journal of World Business, Elsevier, vol. 53(3), pages 307-322.
    6. Alexander Ebner, 2010. "Varieties of Capitalism and the Limits of Entrepreneurship Policy: Institutional Reform in Germany’s Coordinated Market Economy," Journal of Industry, Competition and Trade, Springer, vol. 10(3), pages 319-341, September.
    7. Chris Howell, 2016. "Regulating class in the neoliberal era: the role of the state in the restructuring of work and employment relations," Work, Employment & Society, British Sociological Association, vol. 30(4), pages 573-589, August.
    8. Carney, Michael & Estrin, Saul & Liang, Zhixiang & Shapiro, Daniel, 2022. "Are Latin American business groups different? An exploratory international political economy perspective," LSE Research Online Documents on Economics 111821, London School of Economics and Political Science, LSE Library.
    9. Song, Ji-Won, 2021. "How MNE subsidiaries transfer HRM practices in distant environments: A tale of two IKEA subsidiaries," Journal of International Management, Elsevier, vol. 27(2).
    10. Baccaro, Lucio & Pontusson, Jonas, 2018. "Comparative political economy and varieties of macroeconomics," MPIfG Discussion Paper 18/10, Max Planck Institute for the Study of Societies.
    11. Leone Leonida & Marianna Marra & Sergio Scicchitano & Antonio Giangreco & Marco Biagetti, 2020. "Estimating the Wage Premium to Supervision for Middle Managers in Different Contexts: Evidence from Germany and the UK," Work, Employment & Society, British Sociological Association, vol. 34(6), pages 1004-1026, December.
    12. Weng, David H. & Peng, Mike W., 2018. "Home bitter home: How labor protection influences firm offshoring," Journal of World Business, Elsevier, vol. 53(5), pages 632-640.
    13. Malik, Tariq H., 2017. "Varieties of capitalism, innovation performance and the transformation of science into exported products: A panel analysis," Technological Forecasting and Social Change, Elsevier, vol. 118(C), pages 324-333.
    14. ten Brink, Tobias, 2010. "Strukturmerkmale des chinesischen Kapitalismus," MPIfG Discussion Paper 10/1, Max Planck Institute for the Study of Societies.
    15. Fan, Di & Li, Yi & Chen, Liang, 2017. "Configuring innovative societies: The crossvergent role of cultural and institutional varieties," Technovation, Elsevier, vol. 66, pages 43-56.
    16. Céline Gainet, 2010. "Exploring the Impact of Legal Systems and Financial Structure on Corporate Responsibility," Journal of Business Ethics, Springer, vol. 95(2), pages 195-222, September.
    17. Rachael Gibson & Harald Bathelt, 2014. "Proximity relations and global knowledge flows: specialization and diffusion processes across capitalist varieties," Chapters, in: André Torre & Frédéric Wallet (ed.), Regional Development and Proximity Relations, chapter 9, pages 291-314, Edward Elgar Publishing.
    18. Kalinowski, Thomas, 2013. "Crisis management and the varieties of capitalism: Fiscal stimulus packages and the transformation of East Asian state-led capitalism since 2008," Discussion Papers, Project Group Modes of Economic Governance SP III 2013-501, WZB Berlin Social Science Center.
    19. Jordi A. Surroca & Ruth V. Aguilera & Kurt Desender & Josep A. Tribó, 2020. "Is managerial entrenchment always bad and corporate social responsibility always good? A cross‐national examination of their combined influence on shareholder value," Strategic Management Journal, Wiley Blackwell, vol. 41(5), pages 891-920, May.
    20. Weiping Liu & Jiatao Li, 2019. "Unbalanced Institutions in Market Transition: How Do They Matter for Firm Strategic Choices and Performance in Emerging Economies?," Management International Review, Springer, vol. 59(5), pages 675-702, October.

    More about this item

    Keywords

    Varieties of capitalism; Innovation; Corporate strategy; Economic institutions;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O35 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Social Innovation
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • I2 - Health, Education, and Welfare - - Education

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:snbeco:v:2:y:2022:i:8:d:10.1007_s43546-022-00257-8. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.