Do technological booms matter? New evidence on the relationship between firm size and innovativeness

Abstract

Many papers have been written about the effect of firm size on innovativeness, revealing a positive, a negative or a mixed impact. To this day, the so-called Schumpeterian hypothesis of the above-average innovativeness of large firms has neither been confirmed nor rejected, often because of insufficient data or a too-short observation period. Many studies concentrate only on a specific region or sector, or they analyze a very short time period. Windows of technological opportunities, providing technological booms for both firms and sectors, have not yet been investigated. An analysis of Germany’s chemical, metal and electrical-engineering sectors between 1877 and 1932 reveals that the sector-specific long-term relationship between firm size and innovativeness is negative, except during times of specific technological booms. In combination with firm-specific characteristics, this new aspect can contribute to a better understanding of the long-term relationship between firm size and innovativeness.Innovation, Firm Size, Technology, Patents

Observable Factors of Innovation Strategy: Firm Activities and Industry Effects

“…In either case, there should be a positive relationship between size and (successful) technological innovation. However, the empirical evidence for such a relationship between size (or the d egree of industry concentration) on one hand and innovativeness or R&D intensity on the other is often contradictory or ambiguous (Degner, 2011;Dolfsma and van der Velde, 2014). More specifically, with regard to the subject of technology strategy and its relationship to internal factors such as size and resources of the firm, Pavitt (1990:24) concluded that this strategy is "determined largely by the firm's size and the nature of its accumulated technological competences."…”

Fi̇rma Büyüklüğü Bağlaminda Yeni̇li̇k, İşbi̇rli̇ği̇ Ve Bi̇lgi̇ Kaynaklarindan Yararlanma

“…Yenilikçiliği etkileyen çok sayıda faktörün olması ve farklı ülkelerde farklı endüstri kollarında benzer sonuçların elde edilmemesi, bu konuda bir fikir birliğinin oluşmadığını göstermektedir. Bugüne kadar Schumpeter'in hipotezi, ne tam olarak doğrulanmış ne de reddedilmiştir (Degner, 2011). Ancak genel inanış, KOBİ'lerin yenilikteki payının 1945'den beri yükselmekte olduğudur (Oakey vd., 1988).…”

“…Firma büyüklüğünün yenilikçilik üzerindeki pozitif, negatif veya karma etkileri üzerine birçok örnek bulunmaktadır (Degner, 2011). Ekonomik İşbirliği ve Kalkınma Teşkilatı'nın (OECD) 30 ülkede yaptığı araştırmaya göre KOBİ'ler, Ar-Ge payları her geçen gün artmasına rağmen yenilik bakımından halen büyük firmaların oldukça gerisindedirler (OECD, 2005).…”

Sector size, technical change and stability in the USA (1957-2006): a Schumpeterian approach

“…TFP approximates technological change as the residual of the growth equation.6 For an extensive discussion on the determinants of technology in the Schumpeterian tradition, seeDegne (2011).7 Of course, a typical drawback, is that R&D expenses of a firm can capture only the input size and do not provide any information regarding the output side (Kleinknecht 2001).8 For an extensive discussion on patents seeGriliches (2008),Degne and Streb (2010).…”