An International Multilevel Analysis of Product Innovation

This paper studies multilevel determinants of product innovation by incumbent firms with data from 68 countries, covering over 25,000 firms in eight manufacturing sectors. The author assesses the predictions of interdisciplinary research on firm behavior in different contexts, which have emphasized...

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Main Author:	Lederman, Daniel
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Firm Behavior: Empirical Analysis D220 Firm Organization and Market Structure L220 Innovation and Invention: Processes and Incentives O310 Technological Change: Choices and Consequences Diffusion Processes O330
Online Access:	http://hdl.handle.net/10986/4668

id	okr-10986-4668
recordtype	oai_dc
spelling	okr-10986-46682021-04-23T14:02:19Z An International Multilevel Analysis of Product Innovation Lederman, Daniel Firm Behavior: Empirical Analysis D220 Firm Organization and Market Structure L220 Innovation and Invention: Processes and Incentives O310 Technological Change: Choices and Consequences Diffusion Processes O330 This paper studies multilevel determinants of product innovation by incumbent firms with data from 68 countries, covering over 25,000 firms in eight manufacturing sectors. The author assesses the predictions of interdisciplinary research on firm behavior in different contexts, which have emphasized that product innovation is affected by three sets of factors: the extent of global engagement, information spillovers, and market structure. The empirical model of the probability of observing a product innovation, a probit model, by a firm considers three levels of analysis: firm characteristics, industry characteristics, and the national context. The econometric evidence supports the global engagement and information spillovers hypotheses, but the evidence on the role of market structure is mixed. Regarding global engagement, the evidence suggests that product innovation by incumbent firms is positively correlated with the act of investing in R&D and licensing of foreign technologies, and country-level average import tariffs reduce the probability of product innovation. Regarding information spillovers, the evidence also shows that a country's patent density is positively correlated with product innovation. In contrast, concerning the market structure hypotheses, country-level indicators of business density and of policy-induced costs of entry are not robustly correlated with product innovation. 2012-03-30T07:29:09Z 2012-03-30T07:29:09Z 2010 Journal Article Journal of International Business Studies 00472506 http://hdl.handle.net/10986/4668 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Firm Behavior: Empirical Analysis D220 Firm Organization and Market Structure L220 Innovation and Invention: Processes and Incentives O310 Technological Change: Choices and Consequences Diffusion Processes O330
spellingShingle	Firm Behavior: Empirical Analysis D220 Firm Organization and Market Structure L220 Innovation and Invention: Processes and Incentives O310 Technological Change: Choices and Consequences Diffusion Processes O330 Lederman, Daniel An International Multilevel Analysis of Product Innovation
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This paper studies multilevel determinants of product innovation by incumbent firms with data from 68 countries, covering over 25,000 firms in eight manufacturing sectors. The author assesses the predictions of interdisciplinary research on firm behavior in different contexts, which have emphasized that product innovation is affected by three sets of factors: the extent of global engagement, information spillovers, and market structure. The empirical model of the probability of observing a product innovation, a probit model, by a firm considers three levels of analysis: firm characteristics, industry characteristics, and the national context. The econometric evidence supports the global engagement and information spillovers hypotheses, but the evidence on the role of market structure is mixed. Regarding global engagement, the evidence suggests that product innovation by incumbent firms is positively correlated with the act of investing in R&D and licensing of foreign technologies, and country-level average import tariffs reduce the probability of product innovation. Regarding information spillovers, the evidence also shows that a country's patent density is positively correlated with product innovation. In contrast, concerning the market structure hypotheses, country-level indicators of business density and of policy-induced costs of entry are not robustly correlated with product innovation.
format	Journal Article
author	Lederman, Daniel
author_facet	Lederman, Daniel
author_sort	Lederman, Daniel
title	An International Multilevel Analysis of Product Innovation
title_short	An International Multilevel Analysis of Product Innovation
title_full	An International Multilevel Analysis of Product Innovation
title_fullStr	An International Multilevel Analysis of Product Innovation
title_full_unstemmed	An International Multilevel Analysis of Product Innovation
title_sort	international multilevel analysis of product innovation
publishDate	2012
url	http://hdl.handle.net/10986/4668
_version_	1764392322847473664

An International Multilevel Analysis of Product Innovation

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