() and Almas Heshmati
Hans Lööf: Department of Industrial Economics and Management, Postal: Royal Institute of Technology, 100 44 Stockholm, Sweden
Almas Heshmati: The United Nations University, WIDER, Postal: Katajanokkanlaituri 6B, Fin-00160 Helsinki, Finland
Abstract: The objective of this study is to investigate the sensitivity of the estimated relationship between innovation and firm performance. In doing so, we rely on a knowledge production function approach and carry out comparisons in a number of respects. The sensitivity analysis is based on the comparison of a basic econometric model with different alternative models using the same data sources, an identical model but different data sources, different classifications of firm performance and different classifications of innovation. The analyses are performed in both level and growth rate dimensions. The overall picture gives indications of what factors cause variations in the estimated effects of interest and the direction of changes.
42 pages, First version: May 17, 2001. Revised: October 1, 2001.
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