Examining Biases in Measures of Firm Innovation

Posted: 8 Nov 2004

See all articles by Paul H. Jensen

Paul H. Jensen

University of Melbourne - Melbourne Institute of Applied Economic and Social Research

Elizabeth Webster

Swinburne University of Technology; University of Melbourne - Melbourne Institute: Applied Economic & Social Research

Date Written: May 2004

Abstract

A challenge for applied studies of innovation is to find quality-adjusted and unbiased measures for the extent of innovative activity in firms. This paper considers, in the light of the uses for these measures, how well we expect these common firm-level indicators quantify innovative services and how well they actually correlate using data from a sample of 641 firms. The results suggest that while the correlations between indicators are positive, they are quite small. In addition, our findings show that compared with survey measures, the accounting and administrative measures have different biases with respect to firm size, industry sector and innovation type.

Keywords: Innovation, measure, R&D, intellectual property, firm survey

Suggested Citation

Jensen, Paul H. and Webster, Elizabeth M., Examining Biases in Measures of Firm Innovation (May 2004). Available at SSRN: https://ssrn.com/abstract=605022

Paul H. Jensen (Contact Author)

University of Melbourne - Melbourne Institute of Applied Economic and Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

Elizabeth M. Webster

Swinburne University of Technology ( email )

Cnr Wakefield and William Streets, Hawthorn Victor
3122 Victoria, Victoria 3122
Australia

University of Melbourne - Melbourne Institute: Applied Economic & Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
756
PlumX Metrics