An international multilevel analysis of product innovation

By D. Lederman. 2010

115 citations recorded by the source corpus.

This paper studies multilevel determinants of product innovation by incumbent firms with data from 68 countries, covering over 25,000 firms in eight manufacturing sectors. The author assesses the predictions of interdisciplinary research on firm behavior in different contexts, which have emphasized that product innovation is affected by three sets of factors: the extent of global engagement, information spillovers, and market structure. The empirical model of the probability of observing a product innovation, a probit model, by a firm considers three levels of analysis: firm characteristics, industry characteristics, and the national context. The econometric evidence supports the global engagement and information spillovers hypotheses, but the evidence on the role of market structure is mixed. Regarding global engagement, the evidence suggests that product innovation by incumbent firms is positively correlated with the act of investing in R&D and licensing of foreign technologies, and country-level average import tariffs reduce the probability of product innovation. Regarding information spillovers, the evidence also shows that a country's patent density is positively correlated with product innovation. In contrast, concerning the market structure hypotheses, country-level indicators of business density and of policy-induced costs of entry are not robustly correlated with product innovation.

Subfields: Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/4e0aa45c99cd621121180697ea35b5c4e166a239

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Citations in the corpus

Technology, innovation and knowledge: The importance of ideas and international connectivity (2016, background): “With some exceptions (Lederman, 2010; Raab et al., 2014), the most recent studies typically undertake careful disaggregation and provide a detailed analysis of knowledge processes at a very high level of granularity.”
Fifty years of methodological trends in JIBS: Why future IB research needs more triangulation (2020, methodology): “For example, Lederman (2010) utilized a multilevel analysis to conduct a nested empirical assessment of competing hypotheses regarding the nature of the probability of product innovation.”
Do political connections matter for firm innovation? Evidence from emerging markets in Central Asia and Eastern Europe (2020, methodology): “While not all new product innovations developed in these markets can be classified as “radical” given their varying degrees of newness which can be market-, firm- or country-specific (Lederman, 2010), we use this measure under the assumption that new and different products vis-à-vis old ones will ha”
Multilevel Research in the Field of Organizational Behavior (2013, background): “*Lederman, D. (2010). An international multilevel analysis of”
A multilevel analysis of innovation in developing countries (2008, background): “Even if specific national predictors have been recently included in econometric estimates based on large micro datasets from numerous countries (Almeida and Fernandes, 2008; Lederman, 2010), the random variability associated with the national conditions has not been properly accounted for.”
Greasing the Wheels of Change: Bribery, Institutions, and New Product Introductions in Emerging Markets (2019, methodology): “To estimate the impact of bribery on firm’s new product introductions, I follow previous studies (Lederman 2010) and use a probit model that fits appropriately the binary”