Modelling Firm Innovation Using Panel Probit Estimators

Melbourne Institute Working Paper No. 20/01

Date: December 2001

Author(s):

Mark N. Harris
Mark Rogers
Anthony Siouclis

Abstract

Firm-level innovation is investigated using three probit panel estimators, which control for unobserved heterogeneity, and a standard probit estimator. Results indicate the standard probit model is misspecified and that inter-firm networks are important for innovation.

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