Mikko Pohjola, CRE, Turku School of Economics
Using panel data for firms in Norway, this paper examines the persistence of both product and process innovation. In this paper we build on evolutionary theory, where organizational search processes are seen as a main driving force behind innovation. Previous literature has focused mainly on technical and methodological aspects and by and large neglected the theoretical implications of the empirical findings. Altogether, evolutionary theory predicts a positive relationship between past and current innovation activities; not only in relation to persistent R&D efforts or short run profits. Second, prior empirical research on this topic has not analyzed persistency with reference to both product and process innovation, something we remedy in this paper. Innovation persistency is analyzed and identified by means of a dynamic random effects binary choice model using an estimator advanced by the more technically oriented innovation persistency literature.
About the speaker
Co-authors: Tommy H. Clausen (Nordland Research Institute), Koson Sapprasert (TIK) and Bart Verspagen (UNU-MERIT).
Venue: UNU-MERIT conference room
Time: 16:00 - 17:00