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The Innovation Decision and Fixed Costs

In: The Emergence of the Knowledge Economy

Author

Listed:
  • Kees Montfort

    (Free University Amsterdam)

  • Geert Ridder

    (University of Southern California)

  • Alfred Kleinknecht

    (Delft University of Technology)

Abstract

In this study we analyse two new indicators of a firm’s innovative output, i.e., sales per employee of products that are ‘new to the firm’ and sales per employee of products that are ‘new to the firm’s industry’. These indicators were first analysed in Brouwer and Kleinknecht (1996). They noted that, during the observation year, many firms had no sales in either of these two categories and proposed an ad hoc model to deal with the observations with zero sales. A drawback of their procedure is that the parameter estimates do not have a clear interpretation.

Suggested Citation

  • Kees Montfort & Geert Ridder & Alfred Kleinknecht, 2002. "The Innovation Decision and Fixed Costs," Advances in Spatial Science, in: Zoltan J. Acs & Henri L. F. Groot & Peter Nijkamp (ed.), The Emergence of the Knowledge Economy, chapter 5, pages 81-106, Springer.
    • Handle: RePEc:spr:adspcp:978-3-540-24823-1_5
    DOI: 10.1007/978-3-540-24823-1_5
    as

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