Innovative Sales, R&D and Total Innovation Expenditures: Panel Evidence on their Dynamics
Wladimir Raymond, Pierre Mohnen, Franz Palm & Sybrand Schim van der Loeff
#2009-029
This paper studies the dynamic relationship between input and output of
innovation in Dutch manufacturing using an unbalanced panel of
enterprise data from five waves of the Community Innovation Survey
during 1994-2004. We estimate by maximum likelihood a dynamic panel data
bivariate tobit with double-index sample selection accounting for
individual effects. We find persistence of innovation input and
innovation output, a lag effect of the former on the latter and a
feedback effect of the latter on the former. The lag effect remains
significant in the high-tech sector even after four years. Firm and
industry effects are also important.
JEL codes: C33, C34, O31
Keywords: innovation production function, panel data, CIS data,
bivariate dynamic tobit, Netherlands
UNU-MERIT Working Papers
ISSN 1871-9872
