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Openness and innovation-home and export demand effects on manufacturing innovation: panel data evidence for Ireland and Switzerland
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Woerter, Martin and Roper, Stephen. (2010) Openness and innovation-home and export demand effects on manufacturing innovation: panel data evidence for Ireland and Switzerland. Research Policy, Vol.39 (No.1). pp. 155-164. ISSN 0048-7333
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Official URL: http://dx.doi.org/10.1016/j.respol.2009.09.007
Abstract
Recent studies in the tradition of Schmookler have re-emphasised the potential role of demand in stimulating innovation. Here, we reconsider the role of 'home' and 'export' market demand in stimulating manufacturing innovation using comparable panel data for two small open economies - Ireland and Switzerland. Our analysis is based on the estimation of reduced form innovation production functions using panel data estimators over the sample period 1994-2005. For a range of innovation indicators, however, we find little evidence of any significant market demand effects, with innovation performance instead determined largely by firm-level capability effects and characteristics. In policy and strategy terms this suggests the continued value of measures to improve innovation capability regardless of market demand conditions. In more methodological terms our results suggest the validity of the usual assumption implicit in modelling innovation outputs that supply-side factors predominate. (C) 2009 Elsevier B.V. All rights reserved.
| Item Type: | Journal Article |
|---|---|
| Subjects: | H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management H Social Sciences > HD Industries. Land use. Labor |
| Divisions: | Faculty of Social Sciences > Warwick Business School > Centre for Small & Medium-Sized Enterprises Faculty of Social Sciences > Warwick Business School > Entrepreneurship, Innovation & Management Faculty of Social Sciences > Warwick Business School |
| Journal or Publication Title: | Research Policy |
| Publisher: | Elsevier BV |
| ISSN: | 0048-7333 |
| Date: | February 2010 |
| Volume: | Vol.39 |
| Number: | No.1 |
| Number of Pages: | 10 |
| Page Range: | pp. 155-164 |
| Identification Number: | 10.1016/j.respol.2009.09.007 |
| Status: | Peer Reviewed |
| Publication Status: | Published |
| Access rights to Published version: | Restricted or Subscription Access |
| URI: | http://wrap.warwick.ac.uk/id/eprint/6336 |
Data sourced from Thomson Reuters' Web of Knowledge
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