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Chia-Hui Huang
''A Note on the Persistence of Firms' Innovation Behavior: A Dynamic Random Effect Probit Model Approach''
( 2008, Vol. 15 No.5 )
Is firms' innovation behavior persistent? Using both patent and R&D intensity as proxy variables of innovation and employing a new estimation method of the dynamic random effect probit model, this study finds a strong effect of state dependence after controlling for the firm heterogeneity. This result indicates that there is a causal effect from past innovation to current innovation, supporting the hypothesis of persistent innovation.
Keywords: dynamic probit model
JEL: O3 - Technological Change; Research and Development: General
C2 - Single Equation Models; Single Variables: General
Manuscript Received : Feb 26 2008 Manuscript Accepted : Mar 06 2008

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