Arbeitspapier
The Role of Demand in Fostering Product vs Process Innovation: A Model and an Empirical Test
While the extant innovation literature has provided extensive evidence of the so-called "demand-pull" effect, the possible diverse impact of demand evolution on product vs process innovation activities has not been yet investigated. This paper develops a formal model predicting a larger inducing impact of past sales in fostering product rather than process innovation. This prediction is then tested through a dynamic microeconometric model, controlling for R&D persistence, sample selection, observed and unobservable individual firm effects and time and sectoral peculiarities. Results are consistent with the model and suggest that an expansionary economic policy may benefit the diffusion of new products or even the emergence of entire new sectors.
- Language
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Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 10846
- Classification
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Wirtschaft
Innovation and Invention: Processes and Incentives
- Subject
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demand-pull innovation
R&D
technological change
dynamic two tobit
- Event
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Geistige Schöpfung
- (who)
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Dawid, Herbert
Pellegrino, Gabriele
Vivarelli, Marco
- Event
-
Veröffentlichung
- (who)
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Institute of Labor Economics (IZA)
- (where)
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Bonn
- (when)
-
2017
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Dawid, Herbert
- Pellegrino, Gabriele
- Vivarelli, Marco
- Institute of Labor Economics (IZA)
Time of origin
- 2017
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