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On nonparametric estimation of the Schumpeterian link between innovation and firm size : evidence from Belgium, France, and Germany

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  • Entorf, Horst
  • Bertschek, I.
Abstract
This paper analyses the Schumpeterian link between innovative activity and firm size by means of the nonparametric Nadaraya-Watson estimator and of the partially linear approach by Speckman. Four data sets referring to the manufacturing industries of three European countries are available for the analysis. We demonstrate how nonparametric methods can produce more reliable conclusions than conventional methods. For this purpose, the roles of bandwidth choice, wild bootstrap, density estimation and trimming are studied. For the German data set of 1984 and for the French data set, we find that small firms and large firms are more innovative than firms of intermediate size while the relation is rather hump-shaped for Germany 1989 and decreasing for Belgium. Including an additional parametric component into the estimations based on the French data, contributes considerably to the explanation of innovative activity without affecting the U-shaped link between innovation and firm size.
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  • Entorf, Horst & Bertschek, I., 1996. "On nonparametric estimation of the Schumpeterian link between innovation and firm size : evidence from Belgium, France, and Germany," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 24118, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
  • Handle: RePEc:dar:wpaper:24118
    Note: for complete metadata visit http://tubiblio.ulb.tu-darmstadt.de/24118/
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    Cited by:

    1. Jürgen Antony & Torben Klarl & Alfred Maußner, 2012. "Firm heterogeneity, credit constraints, and endogenous growth," Journal of Economics, Springer, vol. 105(3), pages 199-224, April.
    2. Noori, Javad & Bagheri Nasrabadi, Mahdi & Yazdi, Najmoddin & Babakhan, Ali Reza, 2017. "Innovative performance of Iranian knowledge-based firms: Large firms or SMEs?," Technological Forecasting and Social Change, Elsevier, vol. 122(C), pages 179-185.
    3. Irani Arráiz & Marcela Melendez & Rodolfo Stucchi, 2012. "Partial Credit Guarantees and Firm Performance: Evidence from the Colombian National Guarantee Fund," OVE Working Papers 0212, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    4. Juan Gabriel Rodríguez & Rafael Salas, 2004. "A Bistochastic Nonparametric Estimator," Economic Working Papers at Centro de Estudios Andaluces E2004/22, Centro de Estudios Andaluces.
    5. Jin, Justin Yiqiang & Kanagaretnam, Kiridaran & Liu, Yi, 2018. "Banks' funding structure and earnings quality," International Review of Financial Analysis, Elsevier, vol. 59(C), pages 163-178.
    6. Caspari, Volker, 2001. "Marktstruktur, Wettbewerb und Innovation," Darmstadt Discussion Papers in Economics 104, Darmstadt University of Technology, Department of Law and Economics.
    7. Rouvinen, Petri, 1999. "Characteristics of Product and Process Innovators among Finnish Manufacturing Firms," Discussion Papers 690, The Research Institute of the Finnish Economy.
    8. Caspari, Volker, 2001. "Marktstruktur, Wettbewerb und Innovation," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 37705, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    9. Torben Klarl, 2008. "On the stability of equilibria in replicator dynamics modelling: an application in industrial dynamics considering resource constraints," Working Papers 046, Bavarian Graduate Program in Economics (BGPE).
    10. Rehme, Günther, 2007. "Wissen und Neue Wachstumstheorie: Die Rolle von fachspezifischem Humankapital," Darmstadt Discussion Papers in Economics 189, Darmstadt University of Technology, Department of Law and Economics.
    11. Jin, Justin Yiqiang & Kanagaretnam, Kiridaran & Lobo, Gerald J. & Mathieu, Robert, 2013. "Impact of FDICIA internal controls on bank risk taking," Journal of Banking & Finance, Elsevier, vol. 37(2), pages 614-624.
    12. Luong Vinh Quoc Duy & Damien Cassells, 2022. "Agglomeration and innovation effort: A longitudinal study on small and medium manufacturing enterprises in Vietnam," Review of Development Economics, Wiley Blackwell, vol. 26(3), pages 1252-1268, August.
    13. Dziallas, Marisa & Blind, Knut, 2019. "Innovation indicators throughout the innovation process: An extensive literature analysis," Technovation, Elsevier, vol. 80, pages 3-29.
    14. Laforet, Sylvie, 2008. "Size, strategic, and market orientation affects on innovation," Journal of Business Research, Elsevier, vol. 61(7), pages 753-764, July.
    15. Ney Luiz Bellegard & Rodolfo Coelho Prates, 2017. "Determinants Of Proficiency In Underlying Processes Of Technological Innovation Management," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(06), pages 1-38, August.
    16. Ahunjonov Umidjon & Hu Shuhua & Bandula Jayathilake & Mu Renyan, 2014. "Characteristics of Small and Medium Enterprise Innovativeness: Cases of Uzbekistan and China," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 1(1), pages 12-27, December.
    17. Carmen Camarero & Mª Garrido & Eva Vicente, 2011. "How cultural organizations’ size and funding influence innovation and performance: the case of museums," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 35(4), pages 247-266, November.
    18. Philippe Jean-Amans & Harouna Wassongma & François Seck Fall, 2023. "Determinants of innovation in small- and medium-sized enterprises in Senegal," Economics Bulletin, AccessEcon, vol. 43(2), pages 894-906.
    19. Leal-Rodríguez, Antonio Luis & Eldridge, Stephen & Roldán, José Luis & Leal-Millán, Antonio Genaro & Ortega-Gutiérrez, Jaime, 2015. "Organizational unlearning, innovation outcomes, and performance: The moderating effect of firm size," Journal of Business Research, Elsevier, vol. 68(4), pages 803-809.
    20. Sunyoung Park, 2019. "Identification of Overall Innovation Behavior by Using a Decision Tree: The Case of a Korean Manufacturer," Sustainability, MDPI, vol. 11(22), pages 1-54, November.
    21. Lijing Tong & Ningyue Liu & Min Zhang & Liming Wang, 2018. "Employee Protection and Corporate Innovation: Empirical Evidence from China," Journal of Business Ethics, Springer, vol. 153(2), pages 569-589, December.
    22. Helena Forsman, 2013. "Environmental Innovations as a Source of Competitive Advantage or Vice Versa?," Business Strategy and the Environment, Wiley Blackwell, vol. 22(5), pages 306-320, July.

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