The Link Between Firms? Innovation Decision and the Business Cycle: An Empirical Analysis

Arbeitspapier

The sensitivity of innovation activities with respect to the business cycle is often assumed to be small. In this paper the hypothesis on cyclical dependence of innovation activities is tested for firms in the German manufacturing, and additionally for SMEs. To this end firms? innovation decisions are considered. The decision to innovate in one period is modelled via a first-order Markov chain approach. The results suggest that the patterns in innovative behavior are linked to the business cycle.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 04-85

Classification and Topics

• Classification: Wirtschaft ; Firm Behavior: Theory ; Innovation and Invention: Processes and Incentives ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
• Subject: Innovation ; Business Cycle ; Panel Model ; Markov Chains ; Innovationsmanagement ; Innovation ; Konjunktur ; Klein- und Mittelunternehmen ; Schätzung ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Heger, Diana
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (where): Mannheim
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/24092
• Last update: 10.03.2025, 11:43 AM CET