Industry Diversity and Its Impact on the Innovation Performance of Firms: An Empirical Analysis Based on Firm-level Panel Data
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Author
Date
2007-05Type
- Working Paper
ETH Bibliography
yes
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Abstract
This paper investigates empirically the impact of diversity on the innovation performance of a firm. We created a measure for diversity that mirrors differences in the resource base of firms within an industry and tested its impact on innovation in addition to more traditional factors like technology-push, demand-pull, and firm-size, based on panel data stemming from three representative cross sectional surveys carried out in the years 1996, 1999, and 2002 respectively. In fact, diversity has a significant positive impact on the innovation intensity of firms and thus supports more theoretical findings in this area. We also find empirical evidence for the technology push and the demand pull hypotheses as well as the importance of competition for innovation. Show more
Permanent link
https://doi.org/10.3929/ethz-a-005390201Publication status
publishedJournal / series
KOF Working PapersVolume
Publisher
KOF Swiss Economic Institute, ETH ZurichSubject
INNOVATION POLICY; Jacobs Externalities; INNOVATION MANAGEMENT (BUSINESS MANAGEMENT); Innovation Performance; INNOVATIONSPOLITIK; BUSINESS POLICY; Evolution of Industries; UNTERNEHMENSPOLITIK; Panel data; INNOVATIONSMANAGEMENT (UNTERNEHMENSFÜHRUNG); DiversityOrganisational unit
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
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ETH Bibliography
yes
Altmetrics