Variables definition
| Variable name | Type | Description |
|---|---|---|
| Dependent variables | ||
| Product innovation | Dummy | 1 if firm introduced new or significantly improved product or service in the last three years and 0 otherwise |
| Process innovation | Dummy | 1 if firm introduced new or significantly improved operational processes in the last three years and 0 otherwise |
| Marketing innovation | Dummy | 1 if firm introduced any new marketing innovation (i.e significantly modified product service design, introduction of brands, new distribution channels) activities in the last three years and 0 otherwise |
| Organizational innovation | Dummy | 1 if firm introduced any new organizational innovation (i.e new organizing procedures, organizing work reponsiplities and new methods of organizing external relations) activities in last three years and 0 otherwise |
| Independent variables | ||
| Internal R&D | Dummy | 1 if firm carried out internal R&D activities |
| External R&D | Dummy | 1 if firm carried out external R&D activities |
| Knowledge competencies | Dummy | 1 if firm employ more than 5% employee holding a university degree in the last year and 0 otherwise |
| Moderator variables (called as “market competitiveness” which contains 2 main indicators) | ||
| Outdated product and services | Dummy | 1 if firms product and services became quickly out of date due to entries of the competitors product and 0 otherwise |
| Strong competition from abroad | Dummy | 1 if firm faced strong competition from abroad in the last year and 0 otherwise |
| Control variables | ||
| Firm size | Log | Ln-number of total employees in the last year |
| Eastern Germany | Dummy | 1 if firm is located in East part of Germany and 0 otherwise |
| Market share of top selling product/service | Dummy | 1 If firms have more than 5% market share 0 otherwise |
| Industries | ||
| Research intensive industry | Dummy | 1 if firms belong to NACE 20–21, 26–30 and 0 otherwise |
| Other industry | Dummy | 1 if firms belong to NACE 5–19, 22–25, 31–39 for transportation service firms and 0 otherwise |
| Knowledge-intensive Services | Dummy | 1 if firms belong to NACE 58–66, 69–73 (excluding 70.1) and 0 otherwise |
| Other services | Dummy | 1 if firms belong to NACE 46, 49–53, 74, 78–82 and 0 otherwise |
| Variable name | Type | Description |
|---|---|---|
| Product innovation | Dummy | 1 if firm introduced new or significantly improved product or service in the last three years and 0 otherwise |
| Process innovation | Dummy | 1 if firm introduced new or significantly improved operational processes in the last three years and 0 otherwise |
| Marketing innovation | Dummy | 1 if firm introduced any new marketing innovation (i.e significantly modified product service design, introduction of brands, new distribution channels) activities in the last three years and 0 otherwise |
| Organizational innovation | Dummy | 1 if firm introduced any new organizational innovation (i.e new organizing procedures, organizing work reponsiplities and new methods of organizing external relations) activities in last three years and 0 otherwise |
| Internal R&D | Dummy | 1 if firm carried out internal R&D activities |
| External R&D | Dummy | 1 if firm carried out external R&D activities |
| Knowledge competencies | Dummy | 1 if firm employ more than 5% employee holding a university degree in the last year and 0 otherwise |
| Outdated product and services | Dummy | 1 if firms product and services became quickly out of date due to entries of the competitors product and 0 otherwise |
| Strong competition from abroad | Dummy | 1 if firm faced strong competition from abroad in the last year and 0 otherwise |
| Firm size | Log | Ln-number of total employees in the last year |
| Eastern Germany | Dummy | 1 if firm is located in East part of Germany and 0 otherwise |
| Market share of top selling product/service | Dummy | 1 If firms have more than 5% market share 0 otherwise |
| Research intensive industry | Dummy | 1 if firms belong to NACE 20–21, 26–30 and 0 otherwise |
| Other industry | Dummy | 1 if firms belong to NACE 5–19, 22–25, 31–39 for transportation service firms and 0 otherwise |
| Knowledge-intensive Services | Dummy | 1 if firms belong to NACE 58–66, 69–73 (excluding 70.1) and 0 otherwise |
| Other services | Dummy | 1 if firms belong to NACE 46, 49–53, 74, 78–82 and 0 otherwise |
Note(s): NACE is an EU industry classification code