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Small Business Economics

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01.08.2008

Innovation, R&D cooperation and labor recruitment: evidence from Finland

verfasst von: Jaakko Simonen, Philip McCann

Erschienen in: Small Business Economics | Ausgabe 2/2008

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Abstract

This article investigates the role played by one type of firm interaction, namely R&D cooperation, and also the acquisition of labor, in the promotion of industrial innovations. We employ a unique innovation dataset from Finland which combines firm specific information about the innovation performance of the firms along with their individual characteristics, as well as firm specific information regarding the origins of their recent labor acquisitions. Analyzing this data allows us to identify the different roles which the knowledge spillovers and labor markets play in the innovation process. Our results suggest that small firms are generally more innovative than large firms; R&D cooperation is an essential feature of innovation, but the variety of cooperation is of little importance; and labor acquisition appears to be only of limited importance for innovation.

Vorheriger Artikel Boards of directors in family firms: a generational perspective

Nächster Artikel Performance and size: empirical evidence from Portuguese SMEs

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The definitions of innovation are based on the Oslo Manual (OECD 2005) which sets out the guidelines for collecting interpreting innovation data from the CIS surveys. All high technology firms did not necessarily take part in all the innovation surveys, which means that the size of data varies from year to year. However, the high technology industries were selected specifically according to the OECD classification. Although the surveys have been conducted every second year from 1996 onwards, at the time of the analysis only the 1996 and 2000 surveys collected detailed information regarding the types of R&D cooperation relationships.

There are two major justifications for this technique. First, if we assume that information is transferred effectively between different local units within the same firm (Orlando 2000), then it is appropriate to give the same innovation status to all the individual local units of the same firm. Second, the majority of the surveyed firms had less than three establishments, and almost half had only one establishment.

McFadden (1979) and Louviere et al. (2000) argue that for categorical response variable models, a McFadden pseudo R-squared value of between 0.2 and 0.4 represents a very good fit, with a pseudo R-squared value of 0.2 corresponding to an OLS R-square value of the order of 0.7. In addition, we also report the Efron pseudo R squared statistic, which is not based on maximum likelihood estimations, but rather on the first and second moments of the actual and fitted values (Estrella 1998).

In order to check the robustness of the results we also estimated the various models using logit models, and the results are more or less identical to those generated by the probit models. In addition we report the prediction tables (Tables 3–5), which use the estimated coefficients, apply them to each individual observation in the original data, and then count the number of correctly observed outcomes. As we see, almost all individual 1 or 0 counts pass the threshold value, and the models as a whole easily surpass the 50% correct prediction criterion.

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Titel: Innovation, R&D cooperation and labor recruitment: evidence from Finland
verfasst von: Jaakko Simonen
Philip McCann
Publikationsdatum: 01.08.2008
Verlag: Springer US
Erschienen in: Small Business Economics / Ausgabe 2/2008
Print ISSN: 0921-898X
Elektronische ISSN: 1573-0913
DOI: https://doi.org/10.1007/s11187-007-9089-3

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