Determinants of Innovation: The Message from New Indicators by Alfred Kleinknecht

By Alfred Kleinknecht

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This variable becomes insignificant in most equations estimated with data of the subsample containing only innovating firms; this holds in particular for indicators related to the generation of new products. Hence, demand expectations are relevant only for the basic decision to get involved in innovative activities but do not influence the intensity of innovation efforts. Moreover, appropriability effects become somewhat stronger; the variable APPR 3, reflecting the effectiveness of knowledge protection strategies based on specific sales and service efforts as well as the retaining of qualified personnel, becomes significant.

05) Notes: Each column includes the estimated parameters and the standard errors in brackets; the statistical significance of the coefficients and the LR-statistic is indicated with***, **and* representing the 1%, 5% and 10% levels, respectively. Intercepts have been omitted throughout. ESA-test: Score test for equal slopes assumption. N McFadden R2 Schwartz Crit. ) Censored LR-statistic SOURCE 3 SOURCE 2 SOURCE 1 ~ ~ 34 Industrial Innovation in Switzerland more specifically, that is, by three groups of external knowledge sources (SOURCE 1, 2, 3), whereas appropriability is represented by the overall assessment variable APPRG.

This variable becomes insignificant in most equations estimated with data of the subsample containing only innovating firms; this holds in particular for indicators related to the generation of new products. Hence, demand expectations are relevant only for the basic decision to get involved in innovative activities but do not influence the intensity of innovation efforts. Moreover, appropriability effects become somewhat stronger; the variable APPR 3, reflecting the effectiveness of knowledge protection strategies based on specific sales and service efforts as well as the retaining of qualified personnel, becomes significant.

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