Template-type: ReDIF-Paper 1.0
Author-Name: Garcia-Torres, M. Abraham
Author-Email: abrahamgarciatorres@gmail.com
Author-Workplace-Name: UNU-MERIT
Author-Name: Hollanders, Hugo
Author-Email: H.Hollanders@merit.unimaas.nl
Author-Workplace-Name: UNU-MERIT
Title: The Diffusion of Informal Knowledge and Innovation Performance: A sectoral 
	 approach
Abstract: This paper tries to quantify the effect of diffusion of informal 
	 knowledge on the innovative performance of European firms using data 
	 derived from the 3rd Community Innovation Survey. When firms are asked 
	 whether or not they have introduced new products or processes, they were 
	 also asked to which degree such innovations were developed in-house. 
	 These degrees were captured by the CIS variables InPdtW and InPcsW. 
	 These variables ranged from 1 (Mainly done by the firm) to 3 (Mainly 
	 done by other enterprises). The focus of this paper is to investigate 
	 the impact of diffusion of informal knowledge. We combine the previous 
	 variables with another variable which reflects firms that were not doing 
	 any formal collaboration with other institutions. If an innovative firm 
	 has no formal collaboration arrangements and the innovation has not been 
	 done mainly by the firm, then diffusion of informal knowledge is 
	 considered to be the main driver of the innovation.
	 The idea is that informal channels are accessible to all firms. This 
	 paper tries to quantify the impact of such flows of knowledge on firms' 
	 innovation performance. To do this, a two step procedure is followed:  
	 -In a first step, a latent variable for diffusion of informal knowledge 
	 is defined and estimated based on firms' characteristics.  
	 -In a second step, the latent diffusion variable is introduced as a 
	 regressor in a probit/tobit model.
Classification-JEL: C34, O32, O31
Keywords: Knowledge flows, innovation, dynamic equations, sectoral innovation,
	 CIS
Series: UNU-MERIT Working Papers
Creation-Date: 2009
Number: 2009-013
File-URL: https://unu-merit.nl/publications/wppdf/2009/wp2009-013.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2009013