Persistence of Innovation in Dutch Manufacturing: Is it Spurious?

32 Pages Posted: 31 Mar 2006

See all articles by Wladimir Raymond

Wladimir Raymond

University of Maastricht

Pierre Mohnen

Maastricht University - UNU-MERIT

Franz C. Palm

University of Maastricht - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Sybrand Schim van der Loeff

University of Maastricht

Date Written: March 2006

Abstract

This paper studies the persistence of innovation and the dynamics of innovation output in Dutch manufacturing using firm data from three waves of the Community Innovation Surveys (CIS), pertaining to the periods 1994-1996, 1996-1998, and 1998-2000. We estimate by maximum likelihood a dynamic panel data type 2 tobit model accounting for individual effects and handling the initial conditions problem. We find that there is no evidence of true persistence in achieving technological product or process innovations, while past shares of innovative sales condition, albeit to a small extent, current shares of innovative sales.

Keywords: dynamic panel data type 2 tobit, innovation, spurious persistence

JEL Classification: C33, C34, O31

Suggested Citation

Raymond, Wladimir and Mohnen, Pierre and Palm, Franz C. and van der Loeff, Sybrand Schim, Persistence of Innovation in Dutch Manufacturing: Is it Spurious? (March 2006). CESifo Working Paper Series No. 1681, Available at SSRN: https://ssrn.com/abstract=894203

Wladimir Raymond

University of Maastricht ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

Pierre Mohnen

Maastricht University - UNU-MERIT ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands
31-43-3884464 (Phone)
31-43-3884495 (Fax)

Franz C. Palm (Contact Author)

University of Maastricht - Department of Economics ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands
+31-(0)43-3883833 (Phone)
+31-(0)43-3258535 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.cesifo.de

Sybrand Schim Van der Loeff

University of Maastricht ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

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