Firm Leadership and Innovative Performance: Evidence from Seven EU Countries

Posted: 12 Jan 2005

See all articles by Dirk Czarnitzki

Dirk Czarnitzki

Centre for European Economic Research (ZEW); Catholic University of Leuven (KUL)

Kornelius Kraft

University of Dortmund - Department of Economics; IZA Institute of Labor Economics

Abstract

This paper considers the effect of different firm leadership on the innovative performance of firms from seven EU countries. We investigate whether owner-led or manager-led firms achieve a larger share of their turnover with product innovations. Economic theory does not propose clear answers to this question. In the empirical analysis, it turns out that the manager-led firms are more active innovators: the share of sales based on new products is larger if firms' managers do not hold any of the firms' capital. Surprisingly, there are no differences between the seven countries included in the regression analysis.

Keywords: R&D, product innovations, manager, tobit, fractional response model

JEL Classification: O32, O31, D21, C24

Suggested Citation

Czarnitzki, Dirk and Kraft, Kornelius, Firm Leadership and Innovative Performance: Evidence from Seven EU Countries. Available at SSRN: https://ssrn.com/abstract=647403

Dirk Czarnitzki (Contact Author)

Centre for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
Mannheim, 68034
Germany

Catholic University of Leuven (KUL) ( email )

Faculty of Economics and Business
Naamsestraat 69
Leuven, 3000
Belgium
+32 16 326906 (Phone)
+32 16 325799 (Fax)

HOME PAGE: http://www.econ.kuleuven.be/msi/faculty_members.htm

Kornelius Kraft

University of Dortmund - Department of Economics ( email )

D-44221 Dortmund
Germany
+49 231 755-3152 (Phone)
+49 231 755-3155 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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