Firm Maturity and Product and Process R&D in Swedish Manufacturing Firms
2005 (English)Report (Other academic)
This paper investigates the commonly debated question about innovations and firm age.Are innovations made by incumbent firms, and does innovation therefore constitute abarrier to entry, or is innovation a way for new firms to successfully compete? The paperfurther investigates the relationship between firm size and innovation. Does innovationconstitute a way for small firms to compete or are innovation a large firm phenomenon? Inthe analysis the paper explicitly distinguishes between product and process innovation.Data from 1997 and 1999 on product and process R&D, firm size and age in the Swedishmanufacturing industry is used in the empirical analysis. A multinomial logit-model is usedto estimate the probability of performing process and product R&D. The results show thatthere are complementarities between product and process R&D and very few firms conductonly process R&D. The probability of product R&D and combined product and processR&D is higher for large firms and firms that are older than 80 years. The size and ageeffects are more pronounced for firms that carry out both process and product R&D.
Place, publisher, year, edition, pages
CESIS, KTH Royal Institute of Technology , 2005. , 29 p.
CESIS Working Paper Series in Economics and Institutions of Innovation, 39
Product, process, R&D, firm size, firm maturity
IdentifiersURN: urn:nbn:se:kth:diva-72415OAI: oai:DiVA.org:kth-72415DiVA: diva2:487548
QC 201202082012-02-082012-01-312012-02-08Bibliographically approved