Table 4.

Biprobit estimates of product and process innovators: marginal effects

(1)(2)
VariablesProcess (1,0)Product (0,1)Both (1,1)Process (1,0)Product (0,1)Both (1,1)
Processit−20.0936*** (0.0042)0.0003* (0.0002)0.0069*** (0.0009)0.0935*** (0.0042)0.0003* (0.0002)0.0069*** (0.0008)
Productit−20.0313*** (0.0093)0.0057*** (0.0010)0.0092*** (0.0013)0.0313*** (0.0092)0.0057*** (0.0010)0.0091*** (0.013)
TFPit−20.0106** (0.0052)0.0007** (0.0004)0.0016*** (0.0006)
Sizeit−2−0.0318*** (0.0053)0.0010*** (0.0002)−0.0010*** (0.0002)−0.0315*** (0.0053)0.0010*** (0.0002)−0.0010*** (0.0002)
Xit−20.0081** (0.0046)0.0016*** (0.0008)0.0025*** (0.0009)0.0075* (0.0046)0.0016*** (0.0008)0.0025*** (0.0009)
Mit−20.0048*** (0.0009)0.0042*** (0.0008)0.0048*** (0.0009)0.0047*** (0.0009)0.0042*** (0.0008)0.0047*** (0.0047)
R&D int.it−2−0.0061 (0.0052)−0.0001 (0.0008)−0.0005 (0.0010)−0.0061 (0.0052)−0.0001 (0.0008)−0.0005 (0.0010)
Prc¯io0.0390*** (0.0039)0.0012*** (0.0001)0.0388*** (0.0039)0.0012*** (0.0001)
Prd¯io0.0049*** (0.0008)0.0056*** (0.0008)0.0049*** (0.0008)0.0056*** (0.0008)
Size¯i0.0746*** (0.0057)0.0012* (0.0009)0.0067*** (0.0011)0.0738*** (0.0057)0.0012* (0.0009)0.0066*** (0.0011)
R&D int.¯i0.0520*** (0.0091)0.0022** (0.0013)0.0063*** (0.0016)0.0516*** (0.0091)0.0024** (0.0012)0.0065*** (0.0015)
Year/sectorYESYESYESYESYESYES
Observations30,11930,119
Log-L−11934.859−11929.676
Ρ0.415*** (0.025)0.416*** (0.024)
Wald test ρ = 0χ2
207.537

206.952
p-value0.0000.000

Notes:

We follow Wooldridge (2005) to deal with the bias arising from the initial conditions problem and the correlation between the unobserved heterogeneity term and the explanatory variables.

***, ** and *indicate significance at the 1, 5 and 10%, respectively

Source: Authors’ own work

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