Are product and Process Innovations Independent of Each Other?

Kornelius Kraft

161 citations0/0 files storedApplied Economics

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Firm Innovation and Growth Innovation and Knowledge Management Economic Growth and Productivity

Abstract

This paper studies the relationship between product- and process-innovation. After discussing the determinants of product- and process-innovation, a simultaneous equation model is estimated. A positive impact of product-innovation on process-innovation can be proved, but no evidence for a reverse effect to the respect to the inclusion of product-innovation.

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References

1997Capitalism, Socialism and Democracy 1983Limited-dependent and qualitative variables in econometrics 2010Capitalism, Socialism and Democracy 1971Industrial Market Structure and Economic Performance.1982Market Structure and Innovation.1987The Comparative Advantage of Educated Workers in Implementing New Technology 1982Inter-Industry Technology Flows and Productivity Growth 1985R&D Appropriability, Opportunity, and Market Structure: New Evidence on Some Schumpeterian Hypotheses

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2009Product and process innovation: Persistence and complementarities 2008Innovation persistence: Survey and case-study evidence 1999Explaining the decisions to carry out product and process innovations 2016Determinants of innovativeness in SMEs: disentangling core innovation and technology adoption capabilities 2004An empirical test of the asymmetric models on innovative activity: who invests more into R&D, the incumbent or the challenger?

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