Scandinavian Working Papers in Economics

Papers in Innovation Studies,
Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy

No 2014/18: Persistence of cooperation on innovation: Econometric evidence from panel micro data

Martin Srholec ()
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Martin Srholec: CERGE-EI, Prague and CIRCLE, Lund University

Abstract: Arrangements to cooperate on innovation facilitate access to external sources of knowledge. Using panel data derived from five waves of Community Innovation Survey in the Czech Republic, we examine whether firms engage in these arrangements persistently or rather revert to other behaviour. Econometric estimates of dynamic random effects and multivariate probit models provide strong support to the thesis of persistence, particularly of linkages with the university sector and suppliers. The results are robust to the initial conditions problem and serial correlation in idiosyncratic errors. Government programs initiating cooperation on innovation therefore have the potential to induce durable changes in the innovative behaviour of firms.

Keywords: Innovation; cooperation; persistence; panel data; Community Innovation Survey; Czech Republic

JEL-codes: C23; C25; L20; O31; O32

21 pages, September 28, 2014

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