✦ LIBER ✦

ESTIMATING THE INNOVATION FUNCTION FROM PATENT NUMBERS: GMM ON COUNT PANEL DATA

✍ Scribed by BRUNO CRÉPON; EMMANUEL DUGUET

Publisher: John Wiley and Sons
Year: 1997
Tongue: English
Weight: 226 KB
Volume: 12
Category: Article
ISSN: 0883-7252
DOI: 10.1002/(sici)1099-1255(199705)12:3<243::aid-jae444>3.0.co;2-4

No coin nor oath required. For personal study only.

✦ Synopsis

The purpose of this paper is to estimate the patent equation, an empirical counterpart to the `knowledgeproduction function'. Innovation output is measured through the number of European patent applications and the input by research capital, in a panel of French manufacturing ®rms. Estimating the innovation function raises speci®c issues related to count data. Using the framework of models with multiplicative errors, we explore and test for various speci®cations: correlated ®xed eects, serial correlations, and weak exogeneity. We also present a ®rst extension to lagged dependent variables.