Analysis of the innovation activities of Spanish industrial firms using discrete choice and panel data models

Abstract

The main objective of this paper is to analyze the determinants of innovation activities of Spanish manufacturing firms with panel data during the period 1990-1993. We are interested in testing several hypotheses. In particular, how experience conditions the realization of innovations and, moreover, whether these activities are complementary. Since the experience effect is approximated by the lag of the dependent variables (observed or latent) we must use discrete choice models applicable to panel data.