Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/36382
Authors: 
Wörter, Martin
Rammer, Christian
Arvanitis, Spyros
Year of Publication: 
2010
Series/Report no.: 
ZEW Discussion Papers 10-039
Abstract: 
This paper analyses the relationship between past innovation output, competition, and future innovation input in a dynamic econometric setting. We distinguish two dimensions of competition that correspond to the concepts of product substitutability and entry barriers due to fixed costs. Based on firm-level panel data for Germany and Switzerland we obtain consistent results for both countries. Innovation output in t-1 as measured by the sales share of innovative products is positively related to the degree of product obsolescence in t, and negatively to the degree of substitutability in t in both countries. Further, we find that rapid product obsolescence provides positive incentives for higher - primarily product-oriented - R&D investments in t+1, while high substitutability exerts negative incentives for future R&D investment.
Subjects: 
Innovation
R&D
Competition
JEL: 
O3
Document Type: 
Working Paper

Files in This Item:
File
Size
166.7 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.