nep-ino New Economics Papers
on Innovation
Issue of 2007‒04‒09
twenty-six papers chosen by
Koen Frenken
Utrecht University

  1. Patent protection, market uncertainty, and R&D investment By Czarnitzki, Dirk; Toole, Andrew A.
  2. Empirical evidence on the success of R&D co-operation : Happy together? By Aschhoff, Birgit; Schmidt, Tobias
  3. R&D Competition with Radical and Incremental Innovation. By Maria Rosa Battaggion; Daniela Grieco
  4. The Role of Virtual Design Tools on Knowledge Replication and Recombination: An Empirical Investigation. By Antonino Vaccaro; Stefano Brusoni; Francisco Veloso
  5. Information technology as knowledge management enabler in product development. An empirical evidence By ELENA REVILLA
  6. Business R&D and the Interplay of R&D Subsidies and Market Uncertainty By Czarnitzki, Dirk; Toole, Andrew A.
  7. Two for the price of one? : On additionality effects of R&D subsidies ; a comparison between Flanders and Germany By Aerts, Kris; Schmidt, Tobias
  8. The links between international production and innovation: a double link approach By Antonello Zanfei
  9. Determinants of Manufacturing-R&D Co-location By Mikko Ketokivi; Jyrki Ali-Yrkkö
  10. Stagnation in the Drug Development Process: Are Patents the Problem? By Dean Baker
  12. Clusters and Innovation: Beijing's Hi-technology Industry Cluster and Guangzhou's Automobile Industry Cluster By Kuchiki, Akifumi
  13. The perception of obstacles to innovation. Multinational and domestic firms in Italy. By Simona Iammarino; Francesca Sanna-Randaccio; Maria Savona
  14. Organizing the Electronic Century By Richard N. Langlois
  15. Measuring U.S. Innovative Activity By B.K. Atrostic
  16. Longitudinal Study on the Performance of U.S. Pharmaceutical Firms: The Increasing Role of Marketing By Pattikawa, L.H.
  17. Parallel Imports, Drag Price Control and Pharmaceutical Innovation By Ken Tabata; Testuya Shinkai; Satoru Tanaka; Makoto Okamura
  18. Multinational firms, global value chains and the organization of technology transfer By Federica Saliola; Antonello Zanfei
  19. The Role of Production Organization, Infrastructure, and R&D in the Catching-up Process of Japanese to German Industries By Conrad, Klaus; Wastl, Dieter
  20. Research Cycles By Yann Bramoullé; Gilles Saint-Paul
  21. Inter- and Intra-Firm Diffusion of Technology: the Example of E-commerce : An Analysis based on Swiss Firm-level Data By Heinz Hollenstein; Martin Woerter
  22. Information Sharing in Joint Research and Development By CHUMA Hiroyuki; FUJIMURA Shuzo; KAWAGOE Toshiji; MATSUBAE Taisuke; OKUNO (FUJIWARA) Masahiro; TAKIZAWA Hirokazu; WATANABE Yasunori; YOKOYAMA Izumi
  23. Patents, Innovations and Economic Growth in Japan and South Korea: Evidence from individual country and panel data By Sinha, Dipendra
  24. Knowledge Codification and Endogenous Growth By Maik T. Schneider
  25. Knowledge Spillover Agents and Regional Development By Michaela Trippl; Gunther Maier
  26. Creative Destruction and Firm-Specific Performance Heterogeneity By Hyunbae Chun; Jung-Wook Kim; Randall Morck; Bernard Yeung

  1. By: Czarnitzki, Dirk; Toole, Andrew A.
    Abstract: The real options investment theory shows that greater uncertainty about market revenues reduces current R&D investment by increasing the value of waiting. This paper presents empirical evidence that patent protection mitigates the effect market uncertainty on R&D investment.
    Keywords: Real Options Theory, Uncertainty, R&D, Intellectual Property Protection, Censored Regression
    JEL: C25 O31 O33
    Date: 2006
  2. By: Aschhoff, Birgit; Schmidt, Tobias
    Abstract: In this paper we analyse the effect of R&D co-operation on firms’ innovation performance. We investigate the effect of past co-operation on current sales of innovative products, distinguishing between products new to the firm and new to the market, and on cost reductions due to innovative processes. Particular attention is paid to the impact of different co-operation partners. The analysis rests on firm-level data from two consecutive waves of the annual German innovation survey. We find that innovative firms that cooperate have a higher share of turnover with market novelties and a higher share of cost reduction due to process innovations than non-cooperating firms. In particular, R&D cooperation with research institutes has a positive influence on a firm's economic success with market novelties, while R&D co-operation with competitors leads to an increase in the cost reduction attributable to innovative processes.
    Keywords: R&D Co-operation, Innovation Success, Germany, Applied Econometrics
    JEL: C24 L25 O31
    Date: 2006
  3. By: Maria Rosa Battaggion (Department of Economics, University of Bergamo); Daniela Grieco (Bocconi University)
    Abstract: Recent empirical evidence about innovation shows that established firms rarely invest in radical innovation but incrementally improve the existing technology. Revolutionary breakthroughs are more likely to be introduced by new entrants. These stylized facts motivate a renewed attention of the debate on incentives to innovate. In this stream of the literature our paper emphasizes the importance of distinguishing between degrees of innovativeness when comparing an incumbent’s and an entrant’s incentives to invest in innovation. The model presented captures the peculiarity of a radical innovation with respect of an incremental one along three dimension: risk, impact on the existing market and capability of opening up a new market. The results reflect the empirical evidence and emphasize the role of substitutability between markets in determining the strength of this effect.
    Date: 2007–01
  4. By: Antonino Vaccaro (Instituto Superior Técnico of Lisbon, Portugal and Department of Engineering and Public Policy Carnegie Mellon University, USA.); Stefano Brusoni (CESPRI & CRORA, Bocconi University, Milan, Italy.); Francisco Veloso (Department of Engineering and Public Policy, Carnegie Mellon University, USA and Universidade Católica Portuguesa – FCEE, Portugual.)
    Abstract: This paper analyzes the contribution of Virtual Design Tools (VDTs) to the processes of knowledge replication and recombination in the context of product innovation. On the basis of an in depth case study of two automotive firms engaged in two comparable new product development projects, we show that knowledge replication can occur in two distinct ways, namely through simplification and deepening of existing knowledge. By knowledge simplification we mean the selection and isolation of a specific part of the body of technological knowledge associated with the architectural functions of a multi- component system. By knowledge deepening we mean the decomposition of a knowledge packet in units of smaller dimension. We argue that the processes of knowledge simplification and knowledge deepening drive to very different innovation approaches that in turn have different competitive implications for small and large firms.
    Keywords: Virtual Design Tools, Innovation, Modularity, Knowledge Replication, Knowledge Recombination.
    JEL: O32 L25 L62
    Date: 2007–02
  5. By: ELENA REVILLA (Instituto de Empresa)
    Abstract: Product development is a knowledge intensive process. It is widely recognized as a mechanism that produces firms to learn, to enter new technological areas, and to deal more effectively with market uncertainty. Since technology management has become ingrained within the field of knowledge management, product development has been viewed and studied from a knowledge management perspective. In this context, this study focuses on a specific knowledge management initiative, information technology (IT). It empirically explores how IT influences on knowledge based capabilities of product development -specifically knowledge exploitation and exploration.
    Keywords: Information technology, Knowledge management, Product development
    Date: 2007–03
  6. By: Czarnitzki, Dirk; Toole, Andrew A.
    Abstract: The literature suggests that public research and development (R&D) subsidies may reduce market failures affecting private R&D investment caused by incomplete appropriability of knowledge and financial constraints due capital market imperfections. Drawing on the theory of investment under uncertainty, this paper argues that public R&D subsidies increase business R&D investment through an additional mechanism – mitigating the effects of market uncertainty on R&D investment in markets for new products. Using a sample of German manufacturing firms, we show that market uncertainty indeed reduces R&D investment, and that R&D subsidies mitigate the effect of uncertainty. Our findings suggest that public policies aimed at increasing business R&D investment can achieve this objective by reducing the degree of uncertainty in the demand for innovative products.
    Keywords: Real Options Theory, Uncertainty, R&D, Censored Regression
    JEL: C25 O31 O33
    Date: 2006
  7. By: Aerts, Kris; Schmidt, Tobias
    Abstract: In this paper we empirically test whether public R&D subsidies crowd out private R&D investment in Flanders and Germany, using firm level data from the Flemish and German part of the Community Innovation survey (CIS III and IV). Both the non-parametric matching estimator and the conditional difference-in-difference estimator with repeated cross-sections (CDiDRCS) clearly indicate that the crowding-out hypothesis can be rejected: funded firms are significantly more R&D active than non-funded firms. In the domain of additionality effects of R&D subsidies, this paper is the first to apply the CDiDRCS method.
    Keywords: R&D, Subsidies, Policy Evaluation, Conditional Difference-in-Difference
    JEL: C14 C21 H50 O38
    Date: 2006
  8. By: Antonello Zanfei (Department of Economics, Università di Urbino "Carlo Bo")
    Abstract: This paper examines the changing role of multinationals in the global generation, adoption and transfer of innovation. It is argued that the combination of traditional asset exploiting objectives with increasing asset seeking activities entails a transition of multinationals towards a double network structure. On the one hand multinationals are more and more characterised by the interconnection of a large number of internal units that are deeply involved in the company’s use, generation and absorption of knowledge. On the other hand, units belonging to the internal network tend to develop external networks with other firms and institutions that are located outside the boundaries of the multinational firm, in order to increase the potential for use, generation and absorption of knowledge. Extending the analysis to a more general level, it is suggested that each of the external actors with which multinationals are interconnected across countries are themselves involved in extensive webs of relationships with other firms and institutions. By becoming embedded in different local contexts, multinational firms act as bridging institutions connecting a number of geographically dispersed economic and innovation systems. As a result, they are conditioned by, and contribute to, the evolution of different contexts in which they operate.
    Keywords: innovation, multinational firms, networks.
    JEL: F10 F23 O33
    Date: 2007–03
  9. By: Mikko Ketokivi; Jyrki Ali-Yrkkö
    Abstract: The phenomenon of physical R&D-manufacturing co-location is interesting, because researchers have made very different observations regarding its prevalence. In some populations co-location of the two functions seems to be the norm; in others, an exception. However, we still do not have an explicit explanatory theory of co-location. In this paper, we look the reasons why manufacturing and R&D may have to be physically co-located. In a sample of 241 Finnish industrial firms, we find that the need for co-location varies drastically from company to company. We further find that product complexity, process complexity and industry clockspeed have an effect on co-location need.
    Keywords: business location decisions, co-location, R&D, manufacturing, contingency theory
    JEL: D21 D23 F21 F23 L6 O32
    Date: 2007–03–30
  10. By: Dean Baker
    Abstract: The rate of new drug development has stagnated, in spite of large increases in both private and public sector spending on biomedical research. The flip side of slower progress is higher drug costs. The cost of developing new drugs has been rising at an average real rate of more than 7 percent since 1987. This report considers the ways in which government patent monopolies distort incentives so that pharmaceutical companies may not opt to minimize research costs. It documents some of the perverse incentives created by patent monopolies in drugs.
    JEL: O31 O32 O34 O38 L12 I18 H21 D42
    Date: 2007–03
  11. By: Anneli Kaasa
    Abstract: This paper investigates how different dimensions of social capital influence innovation output. The novelty of the paper lies in the fact that for measuring social capital, instead of one overall index, six factors are constructed of 20 indicators using principal components analysis. Then, human capital and R&D are also included in the analysis as factors of innovation. Unlike many previous studies, this one uses the structural equation modelling approach instead of regression analysis in order to take into account the relationships between the factors of innovation. Regional-level data from Eurostat Regio and the European Social Survey are analysed. Compared to preceding studies, a larger number of observations is used. The findings provide strong support for the argument that social capital indeed influences innovative activity and furthermore, that different dimensions of social capital have dissimilar effects on innovation.
    Keywords: innovation, social capital, human capital, R&D
    Date: 2007
  12. By: Kuchiki, Akifumi
    Abstract: This paper proposes a flowchart approach to the automobile industry cluster policy and the hi-technology industry cluster policy to prioritize policy measures. First, in the automobile industry cluster, suppliers of parts and components to anchor firms such as Honda, Nissan and Toyota of Japanese assembly makers in Guangzhou, China, can innovate partly because the suppliers have become independent of their anchor firms in the Japanese Keiretsu system. Second, concerning the hi-technology industry clustering in Beijing, we show that the existence of universities is a precondition for the industrial cluster policy and that the leadership of the Zhongguancun Science Park Management Committee of Beijing Municipality is crucial to the success of the industrial cluster policy. The flowchart for the hi-technology industry is different from the one for the automobile industry cluster.
    Keywords: Flowchart approach, Prioritization, Innovation, Guangzhou, Beijing, Universities, Local government, China, Industrial estate, Industrial policy, Research organization, ・
    JEL: O18 R11
    Date: 2007–02
  13. By: Simona Iammarino; Francesca Sanna-Randaccio; Maria Savona
    Abstract: This paper looks at the perception of obstacles to innovation of both multinational enterprises (MNEs) and domestic firms located in Italy. Drawing on data from the firm-level Italian CIS3, we first explore to what extent innovative behaviours are both firm- (i.e. foreign- versus nationally-owned multinationals, MNEs versus single domestic firms) and region-specific. We then examine whether the perception of obstacles to innovation varies among types of firms and regions.
    Keywords: obstacles to innovation, multinational firms, innovation processes, regional location
    JEL: O3 F23 R3
    Date: 2007
  14. By: Richard N. Langlois (University of Connecticut)
    Abstract: This paper's title is an echo of Alfred Chandler's (2001) chronicle of the electronics industry, Inventing the Electronic Century. The paper attempts (A) a general reinterpretation of the pattern of technological advance in (American) electronics over the twentieth century and (B) a somewhat revisionist account of the role of organization and institution in that advance. The paper stresses the complex effects of product architecture and intellectual property regime on industrial organization and technological change. Whereas large research-oriented multi-divisional firms always played a crucial role in the industry's history, such firms proved most adept at systemic innovation, as in the case of television. But, as in the cases of early radio and of the IBM 360 mainframe computer, the multi-divisional firm was capable of bottling up within its boundaries (often through intellectual property rights) a relatively modular architecture whose "option value" such firms could not fully exploit. America's adherence to the model of industrial research within the vertically integrated corporation arguably contributed to the demise of American consumer electronics in the 1970s and 1980s. And America's subsequent relative success in semiconductors and personal computers --- and in today's converged digital consumer electronics --- owes much to the specialized and "fragmented" character of American industry, which could take fuller advantage of competitive global value chains and of the option value of modular architectures.
    Keywords: electronics, modularity, product architecture, vertical integration.
    JEL: L2 L63 N62 O33 O34
    Date: 2007–03
  15. By: B.K. Atrostic
    Abstract: Innovation has long been credited as a leading source of economic strength and vitality in the United States because it leads to new goods and services and increases productivity, leading to better living standards. Better measures of innovative activities–activities including but not limited to innovation alone–could improve what we know about the sources of productivity and economic growth. The U.S. Census Bureau either currently collects, or has collected, data on some measures of innovative activities, such as the diffusion of innovations and technologies, human and organizational capital, entrepreneurship and other worker and firm characteristics, and the entry and exit of businesses, that research shows affect productivity and other measures of economic performance. But developing an understanding of how those effects work requires more than just measures of innovative activity. It also requires solid statistical information about core measures of the economy: that is, comprehensive coverage of all industries, including improved measures of output and sales and additional information on inputs and purchased materials at the micro (enterprise) level for the same economic unit over time (so the effects can be measured). Filling gaps in core data would allow us to rule out the possibility that a measure of innovative activity merely proxies for something that is omitted from or measured poorly in the core data, provide more information about innovative activities, and strengthen our ability to evaluate the performance of the entire economy. These gaps can be filled by better integrating existing data and by more structured collections of new data.
    Keywords: innovation, productivity, economic measurement
    Date: 2007–03
  16. By: Pattikawa, L.H. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: Nowadays, the U.S. pharmaceutical industry has been under thorough scrutiny. Popular press claims of intensive marketing activities that go beyond R&D, the strong increase of me-too drugs, and, at the same time, the high industry profitability have contributed to public skepticism. Despite this increasing role of marketing, studies on the profitability of pharmaceutical firms mainly focus on the role of R&D. In this paper, we investigate the impact of advertising and product differentiation on pharmaceutical firms? market value over the period 1971-2005. Especially, we examine whether there has been a change in the pattern of returns in these variables over this period. Our results show that, nowadays, pharmaceutical firms? performance is not only closely linked to their R&D activities but also to marketing activities such as advertising and product differentiation. Since the 1990s, the return of advertising has become three times larger than that of R&D. In addition, we found that the impact of product differentiation came largely from the introduction of the so called incrementally modified drugs (IMD). The vast increase of the number of IMDs since the 1990s is likely to contribute to this development. Our results emphasize the role of advertising and product differentiation in the virtuous rent-seeking behavior in the pharmaceutical industry.
    Keywords: Advertising;Product differentiation;Marketing;Market value;Panel data;Pharmaceutical industry;
    Date: 2007–03–28
  17. By: Ken Tabata (Kobe City University of Foreign Studies); Testuya Shinkai (Kwansei Gakuin University); Satoru Tanaka (Kobe City University of Foreign Studies); Makoto Okamura (Hiroshima University)
    Abstract: This paper examines how parallel importation influences pharmaceutical innovation and the welfare of the economy, when crossnational drug price differentials occur not only because of demand elasticity based factors, but also governmental drug price control based factors. By explicitly considering the governmental drug price control baaed factors, this paper shows that parallel importation may enhance pharmaceutical innovation, when the bargaining power of a foreign government is strong and the price elasticity of demand in the foreign market is small. We also show that the increase in R&D induced by parallel imports may even increase the consumer surplus of a country with high demand elasticities and which could face relatively low drug prices, if parallel imports were not allowed.
    Keywords: Parallel Imports, Pharmaceutical Innovation, Drug Price Control
    JEL: F13 I18 L65
    Date: 2005–08
  18. By: Federica Saliola (The World Bank); Antonello Zanfei (Department of Economics, Università di Urbino "Carlo Bo")
    Abstract: This paper combines insights from different streams of literature to develop a more comprehensive framework for the analysis of technology transfer via value chain relationships. We integrate the existing literature in three ways. First, we consider value chain relationships as a multi-facet process of interaction between buyers and suppliers, involving different degrees of knowledge transmission and development. Second, we assess whether and to what extent value chain relationships are associated with the presence of multinationals and with their embeddedness in the host economy. Third, we take into account the capabilities of local firms to handle the technology as a factor influencing knowledge transfer through value chain relationships. Using data on 1385 firms active in Thailand in 2001-2003, we apply a multinomial logit model to test how the nature and intensity of multinational presence and the competencies of local firms affect the organisation of international technology transfer. We find that knowledge intensive relationships, which are characterized by a significant transmission of technology along the value chains, are positively associated with the presence of global buyers in the local market, with the efforts of MNCs to adapt technology to local contexts, and with the technical capabilities of domestic firms. By contrast, the age of subsidiaries and the share of inputs purchased locally appear to increase the likelihood of value chain relationships with a lower technological profile. Key words: Global value chain, multinationals, technology transfer, knowledge spillovers
    Keywords: Global value chain, multinationals, technology transfer, knowledge spillovers
    JEL: F10 F23 O33
    Date: 2007–03
  19. By: Conrad, Klaus; Wastl, Dieter (Institut für Volkswirtschaft und Statistik (IVS))
    Abstract: This paper presents an empirical study of productivity comparison between Japan and Germany with focus on the R&D and infrastructure. By using time-series datasets from auto vehicle industry and electronic engineering industry, the study shows the reversal of productivity advantage from Germany to Japan around 1980. We argue that Japanese productivity gains from better infrastructure and cost-reducing innovations such as lean production methods . An econometric model determines the causes for the observed differences in the quantities of inputs used. It shows that frequent external procurement among Japanese manufactures has shifted the factor inputs from labor and capital to material, a result which is in line with the philosophy of lean production.
    JEL: D24 C51 L2 L6 O57
  20. By: Yann Bramoullé; Gilles Saint-Paul
    Abstract: This paper studies the dynamics of fundamental research. We develop a simple model where researchers allocate their effort between improving existing fields and inventing new ones. A key assumption is that scientists derive utility from recognition from other scientists. We show that the economy can be either in a regime where new fields are constantly invented, and then converges to a steady state, or in a cyclical regime where periods of innovation alternate with periods of exploitation. We characterize the cyclicals dynamics of the economy, show that indeterminacy may appear, and establish some comparative statics and welfare implications.
    Keywords: Research dynamics, innovation cycles, indeterminacy
    JEL: O39 C61
    Date: 2007
  21. By: Heinz Hollenstein (KOF Swiss Economic Institute, ETH Zurich); Martin Woerter (KOF Swiss Economic Institute, ETH Zurich)
    Abstract: The paper aims at a joint analysis of inter-firm and intra-firm diffusion of technology, taking as an example E-selling and E-purchasing. The analysis is based on an encompassing model of diffusion, drawn from the literature, which is extended by considering technology-specific obstacles and benefits of adoption. As hypothesised, we find, firstly, that the determinants of inter-firm and intrafirm diffusion differ in case of both types of E-commerce; secondly, that the drivers of the diffusion of E-selling and E-purchasing are not the same, and, finally, that uncertainties and adjustment costs, mostly neglected in previous work, are important factors in explaining technology diffusion.
    Keywords: Technology diffusion; Inter-firm and Intra-firm diffusion; E-commerce; E-selling, E-purchasing
    JEL: O3
    Date: 2007–03
  22. By: CHUMA Hiroyuki; FUJIMURA Shuzo; KAWAGOE Toshiji; MATSUBAE Taisuke; OKUNO (FUJIWARA) Masahiro; TAKIZAWA Hirokazu; WATANABE Yasunori; YOKOYAMA Izumi
    Abstract: In today's science-driven industries, such as the semiconductor industry, firms are increasingly engaged in across-firm research and development projects in the form of a research consortium or a strategic alliance. Those collaboration processes, however, have complex aspects due to the competing relationship of the firms in product markets and will not be successful unless the participating firms have enough incentives to reveal their private information and to exert sufficient efforts. The paper attempts to explore the conditions under which firms have enough incentives to reveal their information and/or to expend collaborative efforts. Three existing economic models are examined for this purpose. It is argued that those incentives depend upon the nature of competition in the product markets, information structure, and the way that each firm's private information affects this competition. The models examined in the paper suggest that some mechanism is necessary to evaluate private technical information of each firm and to convey it to the other firms without distortion. This conclusion coincides with the observed fact that a neutral third-party plays an indispensable role in a successful research consortium.
    Date: 2007–03
  23. By: Sinha, Dipendra
    Abstract: This paper looks at the relationship between patents and economic growth in Japan and South Korea using both individual country and panel data. For the econometric estimation, we use annual data for 1963-2005. For Japan, we find that the logarithms of real GDP and the number of patents are cointegrated. For South Korea, we do find such evidence. For Japan, we find a two-way causality between the growth of real GDP and the growth of the number of patents. For panel data, we find that the logarithms of real GDP and the number of patents are cointegrated. We find some evidence that the growth of real GDP Granger causes the growth of the number of patents. However, we do not find any evidence of reverse causality.
    Keywords: patents; innovations; panel data
    JEL: O30 C10
    Date: 2007–03–21
  24. By: Maik T. Schneider (Center of Economic Research (CER-ETH) at ETH Zurich)
    Abstract: The usual models of endogenous growth treat knowledge codification as a byproduct of R&D and as costless. In contrast to this, one can observe great efforts of private firms for the purposeful codification of knowledge. We incorporate costly knowledge codification in an overlapping generations framework of endogenous growth and show that the steady-state growth rate of capital being higher than that of the knowledge stock is a sufficient condition for knowledge codification. With decreasing codification costs, every overlapping generations economy will be codifying in the long run if the rate at which the costs decline is higher than or equal to the steady-state growth rate of knowledge.
    Keywords: Knowledge, Human Capital, Knowledge Codification, Economic Growth
    JEL: O11 O30 O41
    Date: 2007–02
  25. By: Michaela Trippl; Gunther Maier
    Date: 2007
  26. By: Hyunbae Chun; Jung-Wook Kim; Randall Morck; Bernard Yeung
    Abstract: Traditional U.S. industries with higher firm-specific stock return and fundamentals performance heterogeneity use information technology (IT) more intensively and post faster productivity growth in the late 20th century. We argue that elevated firm performance heterogeneity mechanically reflects a wave of Schumpeter's (1912) creative destruction disrupting a wide swath of U.S. industries, with newly successful IT adopters unpredictably undermining established firms. This evidence validates endogenous growth theory models of creative destruction, such as Aghion and Howitt (1992); and suggests that recent findings of more elevated firm-specific performance variation in richer, faster growing countries with more transparent accounting, better financial systems, and more secure property rights might partly reflect more intensive creative destruction in those economies.
    JEL: E32 G3 O3 O4 O51
    Date: 2007–04

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