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Measuring process innovation output: Results from firm-level panel data

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  • Rammer, Christian

Abstract

Process innovation is an important part of firms' innovation activities and supposed to significantly contribute to positive returns from innovation. Measuring process innovation output at the firm level is still in its infancy, however. This paper reports empirical evidence on measures of process innovation output that have been collected in the German part of the Community Innovation Survey (CIS) over the past 25 years. Distinguishing between cost reduction and quality improvement, the paper finds low item non-response for the qualitative (yes/no) part of both indicators. Item non-response is much higher for quantitative information and does not decrease with questionnaire experience of firms. For both cost reduction and quality improvement, response to quantitative indicators is categorical in nature, and firms tend to report the same set of values when participating frequently in the survey. The determinants of realising the two types of process innovation output are very similar. The observed variance in the quantitative part is difficult to explain for both measures. The impact of process innovation output on firm performance is limited. While cost reduction seems to spur the export share, sales increase due to quality improvement is associated with higher profitability.

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  • Rammer, Christian, 2022. "Measuring process innovation output: Results from firm-level panel data," ZEW Discussion Papers 22-002, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:22002
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    Cited by:

    1. Rammer, Christian & Schubert, Torben, 2022. "Dokumentation zu den Innovationserhebungen 2017 bis 2021," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 270423.
    2. Rammer, Christian, 2023. "Measuring process innovation output in firms: Cost reduction versus quality improvement," Technovation, Elsevier, vol. 124(C).
    3. Blind, Knut & Niebel, Crispin Miles & Rammer, Christian, 2022. "The impact of the EU General Data Protection Regulation on innovation in firms," ZEW Discussion Papers 22-047, ZEW - Leibniz Centre for European Economic Research.

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    More about this item

    Keywords

    Process innovation; innovation output; panel data; Community Innovation Survey;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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