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Title:Do Spillovers Stimulate Incremental or Drastic Product Innovations? Hypotheses and Evidence from German Establishment Data PDF Logo
Authors:Jirjahn, Uwe
Kraft, Kornelius
Issue Date:2006
Series/Report no.:ZEW Discussion Papers 06-23
Abstract:We estimate the determinants of various types of product innovation. Knowledge spillovers from rivals have a positive impact on incremental innovations. This impact is largely independent of the participation in R&D cooperations. Spillovers exert no such independent influence on drastic innovation activities. The results support the hypothesis that establishments face difficulties in using knowledge that comes from areas they are not familiar with. Establishments exploit spillovers for incremental innovations rather than for drastic innovations. To a limited degree R&D cooperations can help to overcome the difficulties in using spillovers for drastic innovations. Furthermore, our estimates provide evidence that a firm?s own R&D effort and the use of outside information are substitutive.
Subjects:New Products
Patents
Spillovers
Learning
R&D
JEL:O32
O31
L60
L15
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des ZEW
ZEW Discussion Papers

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