A Note on the Persistence of Firms' Innovation Behavior: A Dynamic Random Effect Probit Model Approach

Is firms' innovation behavior persistent? Using both patent and R&D intensity as proxy variables of innovation and employing a new estimation method of the dynamic random effect probit model, this study finds a strong effect of state dependence after controlling for the firm heterogeneity. This result indicates that there is a causal effect from past innovation to current innovation, supporting the hypothesis of persistent innovation.

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Year of publication:	2008-03-06
Authors:	Huang, Chia-Hui
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 15.2008, 5, p. 1-9
Publisher:	AccessEcon
Subject:	dynamic probit model

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Extent:	application/pdf
Type of publication:	Article
Classification:	O3 - Technological Change; Research and Development ; C2 - Econometric Methods: Single Equation Models
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010629278