Determinants of innovation behaviour and investment estimates for west-german manufacturing firmsWerner Smolny Economics of Innovation and New Technology, 2003, vol. 12, issue 5, 449-463 Abstract: In this paper, the determinants of innovation behaviour and investment are explored with a large micro-data panel from West-German manufacturing firms. The estimates are discussed within a microeconomic model with monopolistic competition, demand uncertainty and a delayed adjustment of capacities and the production technology. The estimates reveal positive firm-size effects which hint towards scale economies associated with innovations. Market power promotes innovations but not investment, and exporters innovate more but exhibit less investment expenditures. Finally, excess demand promotes innovations. This indicates a complementarity of innovations and investment and hints towards permanent productivity effects of temporary demand shocks. Keywords: Endogenous Innovations And Investment; Market Structure; Business Cycle (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:ecinnt:v:12:y:2003:i:5:p:449-463 Ordering information: This journal article can be ordered from DOI: 10.1080/1043859022000029230 Access Statistics for this article Economics of Innovation and New Technology is currently edited by Professor Cristiano Antonelli More articles in Economics of Innovation and New Technology from Taylor & Francis Journals |
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