Knowledge base combinations and firm growth

The link between knowledge and firm growth has been a core topic in economics of innovation for a long time. However, despite strong theoretical arguments, empirical evidence remains inconclusive. One important reason for this conundrum may be the failure of standard indicators to capture firm innovation activities comprehensively. We contribute to overcoming this limitation by looking in the knowledge processes that drive variegated forms of innovation and aim thereby to establish a solid relationship with firm growth in more detail. Our arguments draw on the differentiated knowledge base approach, distinguishing between analytical, synthetic, and symbolic knowledge. We measure the three types of knowledge bases with detailed longitudinal linked-employer-employee micro-data from Sweden. Econometric findings based on a very large sample of small and medium-sized firms indicate significantly positive effects of the three knowledge types, and in particular combinations thereof, on firm growth. In addition, we show that not only high-growth but also slow-growth firms benefit immensely from the use of combinatory knowledge bases. We find evidence on a curvilinear relation between knowledge bases and growth of firms. Beyond certain thresholds increasing the knowledge bases further results in decreasing firm growth. Our results remain robust in a wide range of specifications and econometric models.     

Concentration on the few: mechanisms behind a falling share of innovative firms in Germany

Innovation activities in the German business sector showed two opposing trends over the past two decades: While total innovation expenditures grew substantially, the number of firms conducting innovation activities fell sharply. In this paper, we explore the mechanisms behind the declining trend in the share of innovation active firms. Considering both input (R&D activities) and output (introduction of innovations), we model innovation decisions as a multi-stage process using continuous-time Markov chain analysis. We base our analyses on a 14-year panel from the German part of the Community Innovation Survey. Our results show that smaller firms and firms in sectors with less innovation competition are more likely to stop innovating. We also show that better financial situation and public funding can mitigate the trend towards a falling share of innovating and R&D-performing firms.     

Between-school variation in physical activity,aerobic fitness,and organized sports participation: A multi-level analysis

Abstract

A large proportion of a child's day is spent at school interacting with certain physical surroundings, teachers, and school friends. Thus, schools could have a marked impact on establishing physical activity habits. The aim of the present study was to assess between-school variation in physical activity, aerobic fitness, and organized sports participation. Altogether, we tested 1766 nine- and fifteen-year-old children attending 242 school classes at 35 different schools in Denmark in 1997–2003. The intra-class correlation coefficient (ICC) for objectively assessed physical activity ranged between 0.06 and 0.18 depending on the dimension of physical activity and the time considered (i.e. school time vs. leisure time). For aerobic fitness, an ICC of 0.10 was observed, whereas that for organized sports participation ranged between 0.01 and 0.10 depending on the age group. Studying between-school variation in physical activity provides information about the extent to which children adjust their physical activity habits according to the social and environmental circumstances that they share, and helps to plan future school-based physical activity studies, especially in terms of sample size and power calculation.