Replication data for: Product versus Process: Innovation Strategies of Multiproduct Firms
Principal Investigator(s): View help for Principal Investigator(s) Lisandra Flach; Michael Irlacher
Version: View help for Version V1
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Project Citation:
Flach, Lisandra, and Irlacher, Michael. Replication data for: Product versus Process: Innovation Strategies of Multiproduct Firms. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E114349V1
Project Description
Summary:
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We investigate the effects of better access to foreign markets on innovation strategies of multiproduct firms in industries with different scope for product differentiation. Industry-specific demand and cost linkages induce a distinction between the returns to innovation. In differentiated industries, cannibalization is lower and firms invest more in product innovation. In homogeneous industries, firms internalize intra-firm spillovers and invest more in process innovation. Using firm-level data and large exchange rate devaluations, we show that better access to foreign markets increases the incentive to innovate. However, we exploit differential effects across industries and show that the innovation strategies depend on the scope of differentiation.
Scope of Project
JEL Classification:
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D22 Firm Behavior: Empirical Analysis
D25 Intertemporal Firm Choice: Investment, Capacity, and Financing
F14 Empirical Studies of Trade
G31 Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
L60 Industry Studies: Manufacturing: General
O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
O31 Innovation and Invention: Processes and Incentives
D22 Firm Behavior: Empirical Analysis
D25 Intertemporal Firm Choice: Investment, Capacity, and Financing
F14 Empirical Studies of Trade
G31 Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
L60 Industry Studies: Manufacturing: General
O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
O31 Innovation and Invention: Processes and Incentives
Geographic Coverage:
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Brazil
Time Period(s):
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1998 – 2005
Universe:
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Using the firm unique tax number, we combine two sources of firm-level data: (i) Export customs data from SECEX (Foreign Trade Secretariat), which provides information on the universe of products exported by Brazilian firms, and (ii) innovation surveys from PINTEC (Brazilian Firm Industrial Innovation Survey) conducted with Brazilian firms.
Data Type(s):
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survey data;
administrative records data
Collection Notes:
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Firm-level data come from the Brazilian Industrial Innovation Survey (PINTEC - Pesquisa de Inovacao) from IBGE - Brazilian Statistical Office ("Instituto Brasileiro de Geografia e Estatistica"). This data can be accessed by permission of IBGE. Guidelines for gaining such permission are available at: http://www.pintec.ibge.gov.br/ (go to "tabulacao especial"). General information to access the data is also provided in the attached README file.
Methodology
Data Source:
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Details on data sources are provided in the attached README file.
Unit(s) of Observation:
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Firms and products,
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