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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  MIC2015-0272_data 10/25/2021 03:31:PM
LICENSE.txt text/plain 14.6 KB 10/12/2019 06:47:PM

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:  View help for Summary 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:  View help for JEL Classification
      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:  View help for Geographic Coverage Brazil
Time Period(s):  View help for Time Period(s) 1998 – 2005
Universe:  View help for Universe 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):  View help for Data Type(s) survey data; administrative records data
Collection Notes:  View help for Collection Notes 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:  View help for Data Source Details on data sources are provided in the attached README file.
Unit(s) of Observation:  View help for Unit(s) of Observation Firms and products,

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Published Versions

V1 [2019-10-12]

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