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Innovations from SMEs or Large Firms? Sector Structure and Dynamics

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  • W.A. Dolfsma
  • G. van der Panne

Abstract

In this paper we investigate which elements in both an industry’s structure and in an industry’s dynamics affect innovativeness. We use the most appropriate measure for innovativeness –new product announcements- to find specifically that dominance of large firms consistently affect industry innovativeness negatively. Other industry structure characteristics are surprisingly consistent across different model specifications. Our findings for indicators of industry dynamics are noteworthy for instance as they contrast with the ILC predication that firm entry will boost innovativeness.

Suggested Citation

  • W.A. Dolfsma & G. van der Panne, 2007. "Innovations from SMEs or Large Firms? Sector Structure and Dynamics," Working Papers 07-30, Utrecht School of Economics.
    • Handle: RePEc:use:tkiwps:0730
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    References listed on IDEAS

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    Cited by:

    1. Emma Tredgett & Alex Coad, 2015. "The shaky start of the UK Small Business Research Initiative (SBRI) in Comparison to the US Small Business Innovation Research Programme (SBIR)," Management Working Papers 10, Birkbeck Department of Management, revised Jun 2015.

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    Keywords

    Innovation; small vs large firms; industry structure; industry dynamics; Industry Life Cycle; Ordered by external client;
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