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| Author: | Miravete, E.J. Pernias, J.C. |
| Title: | Innovation complementarity and scale of production |
| Journal: | Journal of Industrial Economics
2006 : MAR, VOL. 54:1, p. 1-29 |
| Index terms: | econometrics production planning industries new products models Spain |
| Language: | eng |
| Abstract: | An econometrically feasible model is presented which uses the information contained in the innovation (here as: innvt.) profile of each firm to test for the existence of complementarity among production and innvt. strategies. The approach can distinguish btw. complementarity and correlation induced by unobserved heterogeneity. The model is used to analyze the Spanish ceramic tile industry where the adoption of the single firing furnace in the 1980s facilitated the introduction of new product designs etc. The econometric results show that there is significant complementarity btw. product and process innvt. Small firms tend to be more innovative overall. |
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