KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
Persistence of various types of innovation analysed and explained
() and Sam Tavassoli
Abstract: This paper analyses the persistency in innovation
behaviour of firms. Using five waves of the Community Innovation Survey in
Sweden, we have traced the innovative behaviour of firms over a ten-year
period, i.e. between 2002 and 2012. We distinguish between four types of
innovations: process, product, marketing, and organizational innovations.
First, using Transition Probability Matrix, we found evidence of
(unconditional) state dependence in all types of innovation, with product
innovators having the strongest persistent behaviour. Second, using a
dynamic probit model, we found evidence of “true” state dependency among
all types of innovations, except marketing innovators. Once again, the
strongest persistency was found for product innovators.
Keywords: persistence; innovation; product innovations; process innovations; market innovations; organizational innovations; state dependence; heterogeneity; firms; Community Innovation Survey; (follow links to similar papers)
JEL-Codes: D22; L20; O31; O32; (follow links to similar papers)
32 pages, January 16, 2015
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