Template-type: ReDif-Paper 1.0
Author-Name: Raymond W. 
Author-Name: Plotnikova T. 
Author-workplace-name: UNU-MERIT
Title: How does firms' perceived competition affect technological innovation in Luxembourg?
Abstract:  This paper revisits the competition-innovation relationship using an  unbalanced panel of enterprise data stemming from four waves of the  Luxembourgish innovation survey for the period 2002-2010. We estimate by  full-information maximum likelihood a nonlinear dynamic  simultaneous-equations model with pseudo-fixed effects using four  measures of perceived competition and three indicators of innovation and  find that firms whose main market is characterised by rapid obsolescence  of products are more likely to spend on innovation and to introduce  product or process innovations. We also find that these firms also often  consider their main market to be characterised by rapidly-changing  technologies where higher competition also implies higher innovation.
Keywords: Multiple or Simultaneous Equation Models, Panel Data, Longitudinal Data, Spatial Time Series, Multiple or Simultaneous Equation Models,  Discrete Regression and Qualitative Choice Models, Discrete Regressors, Proportions, Innovation and Invention, Management of Technological Innovation and R&D; Technological Change, Government Policy 
Classification-JEL: O31, O32, O38, C33, C35
Series: UNU-MERIT Working Papers
Creation-Date: 2015
Number: 2015-001
File-URL: https://unu-merit.nl/publications/wppdf/2015/wp2015-001.pdf
File-Format: application/pdf
File-Size: 321614
Handle: RePEc:unm:unumer:2015001