Innovation Complementarity and Scale of Production

Posted: 9 Nov 2009

See all articles by Eugenio J. Miravete

Eugenio J. Miravete

University of Texas at Austin; Centre for Economic Policy Research (CEPR)

Jose C Pernias

affiliation not provided to SSRN

Multiple version iconThere are 3 versions of this paper

Date Written: 2006


An econometrically feasible, structural model ofproduction and innovation decision that is able to verify the existence ofcomplementary relations among strategies is presented. This model is used toanalyze data on firms in the Spanish ceramic tile industry. Taken from DIRNOVA, a database of Spanish firms from 1988 and 1992, the datashow that there is a significant association between product and processinnovation that is mostly due to unobserved heterogeneity.Another keyfinding is that smaller firms appear to be more inclined to innovate. This isthe result of technology in the case of demand innovations (complementarity),but organizational matters (correlation induced by unobserved heterogeneity)are more important in the case of process innovation. (SAA)

Keywords: Manufacturing industries, Firm strategies, Econometrics, Firm age, Product development, Innovation process

Suggested Citation

Miravete, Eugenio J. and Pernias, Jose C, Innovation Complementarity and Scale of Production (2006). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN:

Eugenio J. Miravete (Contact Author)

University of Texas at Austin ( email )

Department of Economics
1 University Station C3100
Austin, TX 78712-0301
United States
512-232-1718 (Phone)
512-471-3510 (Fax)


Centre for Economic Policy Research (CEPR)

United Kingdom

Jose C Pernias

affiliation not provided to SSRN

No Address Available

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