Another dimension of the potential impact of knowledge spillovers from the use of ICT refers to the effect on firm performance. In this subsection we analyze whether the presence of adoption externalities and the existence of knowledge spillovers that affect firm strategies also affect the firms’ innovative output. In particular, we study whether the use of ICT within the intermediate input markets (downstream and upstream)
in-fluenced the value of the introduced innovations. We consider the case of the sales generated in 2006 from product innovation introduced between 2004-2006 and the re-duction in costs generated in 2006 from process innovation introduced also between 2004-2006.
Tables14 and15show the estimates of equation (9) regarding the impact of the intensity of ICT use downstream (or the firm’s clients) on the increase in sales from product innovations and reduction in costs from process innovations as our dependent variablesyi.j,t, respectively. The results show that the intensity of ICT use downstream positively affect the reduction in costs (from the introduction of process innovations) but has no effect on the increase in sales (from the introduction of product innova-tions). Tables16and17consider the upstream case and find, analogously, a positive effect only on the reduction of costs (from the introduction of process innovations).
This result is robust across alternative specifications and suggests that the use of ICT within the intermediate input markets positively affect the efficiency of internal pro-cesses as suggested by the literature on general purpose technologies (GPT).
5. Conclusions
This paper studies the impact of the adoption of ICT on economic performance at the firm level, considering explicitly the interaction of adopting firms with their clients and suppliers (i.e. downstream and upstream) in a particular segment of the economy: the intermediate input market. The main objective was to identify and quantify the impor-tance of the adoption externalities and knowledge spillovers inherent in the introduc-tion of ICT within the German intermediate input market, their impact on observed firms’ strategies and their overall effect on firm performance. The paper finds strong evidence of adoption externalities. That is, the adoption of ICT at the firm level is pos-itively affected by the use of ICT downstream and upstream (i.e. by a firm’s clients and suppliers).
Moreover, regarding the role of knowledge spillovers the paper shows that the use of ICT upstream (i.e. by a firm’s suppliers) negatively affects the extend of IT outsourcing at the firm level, suggesting a substitution effect between inputs provided by suppliers with an intense use of ICT and a firm’s demand for external IT services. The paper also finds that the use of ICT within the intermediate input markets positively affects
the efficiency of internal processes by increasing the cost reductions generated by the introduction of process innovations.
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Appendix
Table 1: Summary Statistics 2003 and 2006
Variable Mean Std. Dev. Min. Max. Obs.
2003
Prop. of Employees working mainly with PC 0.48 0.34 0.00 1.00 4321 Use of Enterprise Resource Planning (ERP) 0.65 0.48 0.00 1.00 4082
Use of Supply Chain Management (SCM) 0.44 0.50 0.00 1.00 4180
Use of Customer Relationship Management (CRM) 0.52 0.50 0.00 1.00 4335
Use of Business-to-Business (B2B) 0.48 0.50 0.00 1.00 4328
Total Employees 349 1,743 5.00 60,000 3989
Gross Investments in (EUR) Mill. 3.98 55.14 0.00 2,700 2841
Prop. of High Qualified Employees 0.22 0.25 0.00 1.00 3624
Subsidiary of a Parent Company 0.42 0.49 0.00 1.00 4019
Export Activity 0.52 0.50 0.00 1.00 4000
Eastern Germany 0.30 0.46 0.00 1.00 6439
2006
Prop. of Employees working mainly with PC 0.48 0.34 0.00 1.00 4275 Use of Enterprise Resource Planning (ERP) 0.58 0.49 0.00 1.00 4292
Use of Supply Chain Management (SCM) 0.37 0.48 0.00 1.00 4292
Use of Customer Relationship Management (CRM) 0.47 0.50 0.00 1.00 4292
Use of Business-to-Business (B2B) 0.53 0.50 0.00 1.00 4284
Prop. of Outsourced IT Tasks 0.35 0.39 0.00 1.00 4199
Prop. of Sales Increase from Product Inn. 2004-06 0.14 0.21 0.00 1.00 3710 Prop. of Costs Reduction from Process Inn. 2004-06 0.06 0.09 0.00 0.90 3426
The sample includes 4,440 observations from each wave of the ZEW-ICT Survey of 2004 and 2006.
Table 2: Adoption Externalities (Downstream)
Dependent Variable:
Ordinary Least Squares
% Employees with a PC 2006
(1) (2) (3) (4) (5) (6)
% Employees with PC (Downstream)0.5211*** 0.1889*** 0.1919*** 0.1829*** 0.1837*** 0.1807**
(0.1137) (0.0638) (0.0637) (0.0617) (0.0612) (0.0609)
% Employees with PC 0.6213*** 0.6147*** 0.6094*** 0.6089*** 0.6068**
(0.0383) (0.0402) (0.0409) (0.0407) (0.0409)
Supply Chain Management 0.0366** 0.0234* 0.0229* 0.0244
(0.0148) (0.0137) (0.0136) (0.0147)
Customer Relationship Management 0.0292** 0.0290** 0.0298**
(0.0120) (0.0120) (0.0117)
Integrated Controlling Software 0.0041 0.0035 0.0060
(0.0102) (0.0100) (0.0119)
Export Activity 0.0045 0.0055
(0.0179) (0.0174)
Total Employees (in Logs.) -0.0024
(0.0049)
Constant 0.2144*** 0.0943*** 0.0788** 0.0730** 0.0706** 0.0796**
(0.0470) (0.0295) (0.0305) (0.0298) (0.0329) (0.0374)
R2 0.39 0.62 0.62 0.62 0.62 0.62
Observations 1595 1595 1595 1595 1595 1595
All explanatory variables correspond to 2003. Robust standard errors allowing for intra-industry correlation.
Industry dummies included. *** Significance at 1%. ** Significance at 5%. * Significance at 10%.
Table 3: Adoption Externalities (Downstream)
Dependent Variable:
Ordinary Least Squares Supply Chain Management 2006
(1) (2) (3) (4) (5) (6)
Supply Chain Management (Downstream)0.7840*** 0.7876*** 0.6360*** 0.6006*** 0.5493*** 0.5337***
(0.1416) (0.1473) (0.1405) (0.1446) (0.1446) (0.1577)
% Employees with PC 0.1264** 0.0663 0.0382 0.0291 0.0855**
(0.0569) (0.0404) (0.0357) (0.0328) (0.0372)
Supply Chain Management 0.3371*** 0.2535*** 0.2440*** 0.2064***
(0.0247) (0.0236) (0.0240) (0.0232)
Customer Relationship Management 0.0691*** 0.0654*** 0.0482**
(0.0211) (0.0210) (0.0199)
Integrated Controlling Software 0.1744*** 0.1620*** 0.0985***
(0.0262) (0.0277) (0.0245)
Export Activity 0.0954*** 0.0706**
(0.0323) (0.0310)
Total Employees (in Logs.) 0.0611***
(0.0088)
Constant 0.1708*** 0.1233** 0.0341 -0.0447 -0.0778 -0.2774***
(0.0465) (0.0503) (0.0490) (0.0523) (0.0505) (0.0608)
R2 0.06 0.07 0.17 0.21 0.21 0.24
Observations 1602 1602 1602 1602 1602 1602
All explanatory variables correspond to 2003. Robust standard errors allowing for intra-industry correlation.
Industry dummies included. *** Significance at 1%. ** Significance at 5%. * Significance at 10%.
Table 4: Adoption Externalities (Downstream)
Dependent Variable:
Ordinary Least Squares Customer Relationship Management 2006
(1) (2) (3) (4) (5) (6)
Customer Relationship Management (Downstream) 0.1774 0.1055 -0.0448 -0.0283 -0.0410 0.0102 (0.2036) (0.1975) (0.1518) (0.1410) (0.1416) (0.1366)
% Employees with PC 0.2313*** 0.1309** 0.1192** 0.1118** 0.1605***
(0.0672) (0.0539) (0.0491) (0.0469) (0.0485)
Customer Relationship Management 0.3973*** 0.3342*** 0.3309*** 0.3150***
(0.0292) (0.0324) (0.0322) (0.0308)
Supply Chain Management 0.0708** 0.0621** 0.0289
(0.0306) (0.0296) (0.0296)
Integrated Controlling Software 0.1083*** 0.0973*** 0.0413
(0.0298) (0.0308) (0.0328)
Export Activity 0.0832*** 0.0606**
(0.0299) (0.0284)
Total Employees (in Logs.) 0.0541***
(0.0079)
Constant 0.4555*** 0.3945*** 0.2863*** 0.2184*** 0.1805** -0.0165
(0.0859) (0.0868) (0.0771) (0.0716) (0.0698) (0.0722)
R2 0.06 0.08 0.22 0.24 0.24 0.26
Observations 1602 1602 1602 1602 1602 1602
All explanatory variables correspond to 2003. Robust standard errors allowing for intra-industry correlation.
Industry dummies included. *** Significance at 1%. ** Significance at 5%. * Significance at 10%.
Table 5: Adoption Externalities (Downstream)
Dependent Variable:
Ordinary Least Squares Business to Business Systems 2006
(1) (2) (3) (4) (5) (6)
Business to Business Systems (Downstream) 0.3045 0.0743 0.0694 0.0460 0.0278 0.0379 (0.2090) (0.1820) (0.1781) (0.1749) (0.1729) (0.1759)
% Employees with PC 0.1209** 0.1087** 0.0949** 0.0878* 0.1090**
(0.0465) (0.0468) (0.0455) (0.0439) (0.0431) Business to Business Systems 0.2798*** 0.2693*** 0.2610*** 0.2545*** 0.2556***
(0.0280) (0.0277) (0.0291) (0.0288) (0.0293)
Supply Chain Management 0.0786*** 0.0395 0.0304 0.0162
(0.0232) (0.0267) (0.0277) (0.0285)
Customer Relationship Management 0.0592** 0.0567** 0.0500*
(0.0274) (0.0281) (0.0285)
Integrated Controlling Software 0.0504* 0.0388 0.0147
(0.0287) (0.0273) (0.0283)
Export Activity 0.0901*** 0.0804***
(0.0274) (0.0256)
Total Employees (in Logs.) 0.0230***
(0.0078)
Constant 0.4249*** 0.3224*** 0.2972*** 0.2731*** 0.2357*** 0.1552**
(0.0823) (0.0719) (0.0701) (0.0709) (0.0678) (0.0708)
R2 0.03 0.12 0.12 0.13 0.13 0.14
Observations 1595 1595 1595 1595 1595 1595
All explanatory variables correspond to 2003. Robust standard errors allowing for intra-industry correlation.
Industry dummies included. *** Significance at 1%. ** Significance at 5%. * Significance at 10%.
Table 6: Adoption Externalities (Upstream)
Dependent Variable:
Ordinary Least Squares
% Employees with PC 2006
(1) (2) (3) (4) (5) (6)
% Employees with PC (Upstream) 0.4986*** 0.1740*** 0.1621*** 0.1655*** 0.1664*** 0.1647***
(0.1096) (0.0617) (0.0593) (0.0599) (0.0594) (0.0587)
% Employees with PC 0.6223*** 0.6128*** 0.6107*** 0.6101*** 0.6074***
(0.0383) (0.0398) (0.0407) (0.0405) (0.0409)
Customer Relationship Management 0.0396*** 0.0297** 0.0295** 0.0304**
(0.0130) (0.0121) (0.0121) (0.0118)
Supply Chain Management 0.0231 0.0226 0.0245
(0.0138) (0.0137) (0.0147)
Integrated Controlling Software 0.0031 0.0024 0.0056
(0.0101) (0.0098) (0.0119)
Export Activity 0.0047 0.0060
(0.0179) (0.0174)
Total Employees (in Logs.) -0.0031
(0.0048)
Constant 0.1869*** 0.0867** 0.0754** 0.0672** 0.0645* 0.0754*
(0.0559) (0.0326) (0.0315) (0.0326) (0.0361) (0.0399)
R2 0.38 0.62 0.62 0.62 0.62 0.62
Observations 1595 1595 1595 1595 1595 1595
All explanatory variables correspond to 2003. Robust standard errors allowing for intra-industry correlation.
Industry dummies included. *** Significance at 1%. ** Significance at 5%. * Significance at 10%.
Table 7: Adoption Externalities (Upstream)
Dependent Variable:
Ordinary Least Squares Supply Chain Management 2006
(1) (2) (3) (4) (5) (6)
Supply Chain Management (Upstream)1.0392*** 1.0364*** 0.8638*** 0.7298*** 0.6488*** 0.6507***
(0.2084) (0.2135) (0.2206) (0.2040) (0.2085) (0.2302)
% Employees with PC 0.1237** 0.0658 0.0367 0.0277 0.0846**
(0.0558) (0.0477) (0.0353) (0.0326) (0.0369)
Customer Relationship Management 0.2202*** 0.0662*** 0.0628*** 0.0455**
(0.0243) (0.0212) (0.0211) (0.0201)
Supply Chain Management 0.2556*** 0.2460*** 0.2081***
(0.0239) (0.0243) (0.0235)
Integrated Controlling Software 0.1734*** 0.1612*** 0.0972***
(0.0261) (0.0276) (0.0241)
Export Activity 0.0953*** 0.0700**
(0.0325) (0.0313)
Total Employees (in Logs.) 0.0615***
(0.0087)
Constant 0.1450** 0.1003 0.0563 -0.0463 -0.0748 -0.2807***
(0.0618) (0.0662) (0.0744) (0.0678) (0.0654) (0.0757)
R2 0.06 0.07 0.11 0.20 0.21 0.24
Observations 1602 1602 1602 1602 1602 1602
All explanatory variables correspond to 2003. Robust standard errors allowing for intra-industry correlation.
Industry dummies included. *** Significance at 1%. ** Significance at 5%. * Significance at 10%.
Table 8: Adoption Externalities (Upstream)
Dependent Variable:
Ordinary Least Squares Customer Relationship Management 2006
(1) (2) (3) (4) (5) (6)
Customer Relationship Management (Upstream) 0.4239* 0.3257 0.0997 0.1055 0.0959 0.1501 (0.2310) (0.2311) (0.1944) (0.1847) (0.1851) (0.1819)
% Employees with PC 0.2242*** 0.1269** 0.1155** 0.1081** 0.1570***
(0.0688) (0.0548) (0.0496) (0.0474) (0.0490)
Customer Relationship Management 0.3955*** 0.3324*** 0.3291*** 0.3131***
(0.0294) (0.0325) (0.0322) (0.0308)
Supply Chain Management 0.0711** 0.0625** 0.0290
(0.0305) (0.0296) (0.0296)
Integrated Controlling Software 0.1083*** 0.0975*** 0.0408
(0.0299) (0.0308) (0.0329)
Export Activity 0.0826*** 0.0599**
(0.0298) (0.0284)
Total Employees (in Logs.) 0.0545***
(0.0078)
Constant 0.3725*** 0.3231*** 0.2403*** 0.1757** 0.1372* -0.0621
(0.0939) (0.0930) (0.0854) (0.0786) (0.0771) (0.0794)
R2 0.06 0.08 0.22 0.24 0.24 0.26
Observations 1602 1602 1602 1602 1602 1602
All explanatory variables correspond to 2003. Robust standard errors allowing for intra-industry correlation.
Industry dummies included. *** Significance at 1%. ** Significance at 5%. * Significance at 10%.
Table 9: Adoption Externalities (Upstream)
Dependent Variable:
Ordinary Least Squares Business to Business Systems
(1) (2) (3) (4) (5) (6)
Business to Business Systems (Upstream) 0.3422* 0.0818 0.0395 0.0354 0.0173 0.0207 (0.1750) (0.1430) (0.1388) (0.1375) (0.1389) (0.1435)
% Employees with PC 0.1205** 0.1002** 0.0950** 0.0880** 0.1092**
(0.0459) (0.0455) (0.0448) (0.0433) (0.0425) Business to Business Systems 0.2798*** 0.2648*** 0.2612*** 0.2547*** 0.2559***
(0.0278) (0.0294) (0.0289) (0.0286) (0.0291)
Customer Relationship Management 0.0904*** 0.0593** 0.0568* 0.0502*
(0.0236) (0.0278) (0.0285) (0.0289)
Supply Chain Management 0.0395 0.0303 0.0161
(0.0268) (0.0278) (0.0286)
Integrated Controlling Software 0.0502* 0.0387 0.0147
(0.0287) (0.0273) (0.0282)
Export Activity 0.0902*** 0.0806***
(0.0272) (0.0253)
Total Employees (in Logs.) 0.0230***
(0.0077)
Constant 0.3983*** 0.3166*** 0.3031*** 0.2752*** 0.2383*** 0.1600**
(0.0779) (0.0709) (0.0701) (0.0704) (0.0692) (0.0722)
R2 0.03 0.12 0.12 0.13 0.13 0.14
Observations 1595 1595 1595 1595 1595 1595
All explanatory variables correspond to 2003. Robust standard errors allowing for intra-industry correlation.
Industry dummies included. *** Significance at 1%. ** Significance at 5%. * Significance at 10%.
Table 10: Firm Strategies (Upstream)
Dependent Variable:
Ordinary Least Squares IT Outsourcing
(1) (2) (3) (4) (5) (6)
% Employees with PC (Upstream) -0.1649 -0.1214 -0.1174 -0.1210 -0.1202 -0.1327 (0.1101) (0.1081) (0.1080) (0.1083) (0.1088) (0.1116)
% Employees with PC -0.0835* -0.0800* -0.0780* -0.0784* -0.0984**
(0.0462) (0.0448) (0.0443) (0.0445) (0.0451)
Customer Relationship Management -0.0140 -0.0040 -0.0042 0.0027
(0.0170) (0.0194) (0.0196) (0.0209)
Supply Chain Management -0.0239 -0.0243 -0.0100
(0.0281) (0.0276) (0.0270)
Integrated Controlling Software -0.0020 -0.0025 0.0217
(0.0206) (0.0207) (0.0214)
Export Activity 0.0038 0.0131
(0.0220) (0.0241)
Total Employees (in Logs.) -0.0234**
(0.0104)
Constant 0.5487*** 0.5623*** 0.5662*** 0.5743*** 0.5721*** 0.6547***
(0.0520) (0.0520) (0.0533) (0.0550) (0.0587) (0.0594)
R2 0.08 0.08 0.08 0.08 0.08 0.09
Observations 1582 1582 1582 1582 1582 1582
All explanatory variables correspond to 2003. Robust standard errors allowing for intra-industry correlation.
Industry dummies included. *** Significance at 1%. ** Significance at 5%. * Significance at 10%.
Table 11: Firm Strategies (Upstream)
Dependent Variable:
Ordinary Least Squares IT Outsourcing 2006
(1) (2) (3) (4) (5) (6)
Supply Chain Management (Upstream)-0.4068** -0.4025** -0.3939** -0.3866** -0.3996**
(0.1637) (0.1626) (0.1652) (0.1664) (0.1746)
% Employees with PC -0.0909* -0.0879* -0.0864* -0.1081** -0.1069**
(0.0453) (0.0439) (0.0434) (0.0438) (0.0442)
Customer Relationship Management -0.0112 -0.0030 0.0032 0.0005
(0.0172) (0.0196) (0.0210) (0.0207)
Supply Chain Management -0.0212 -0.0081 -0.0095
(0.0279) (0.0270) (0.0271)
Integrated Controlling Software -0.0002 0.0222 0.0214
(0.0208) (0.0213) (0.0215)
Export Activity 0.0208 0.0145
(0.0241) (0.0238)
Total Employees (in Logs.) -0.0231** -0.0230**
(0.0104) (0.0106)
Constant 0.5849*** 0.6172*** 0.6195*** 0.6231*** 0.6975*** 0.6038***
(0.0494) (0.0526) (0.0532) (0.0534) (0.0563) (0.0489)
R2 0.08 0.09 0.09 0.09 0.09 0.09
Observations 1582 1582 1582 1582 1582 1582
All explanatory variables correspond to 2003. Robust standard errors allowing for intra-industry correlation.
Industry dummies included. *** Significance at 1%. ** Significance at 5%. * Significance at 10%.
Table 12: Firm Strategies (Upstream)
Dependent Variable:
Ordinary Least Squares IT Outsourcing 2006
(1) (2) (3) (4) (5) (6)
Customer Relationship Management (Upstream) -0.1980 -0.1596 -0.1522 -0.1541 -0.1786 (0.1546) (0.1488) (0.1493) (0.1504) (0.1527)
% Employees with a PC -0.0867* -0.0833* -0.0815* -0.1023** -0.1069**
(0.0459) (0.0445) (0.0440) (0.0446) (0.0442)
Customer Relationship Management -0.0134 -0.0038 0.0030 0.0005
(0.0171) (0.0195) (0.0210) (0.0207)
Supply Chain Management -0.0235 -0.0097 -0.0095
(0.0281) (0.0270) (0.0271)
Integrated Controlling Software -0.0016 0.0220 0.0214
(0.0207) (0.0214) (0.0215)
Export Activity 0.0153 0.0145
(0.0238) (0.0238)
Total Employees (in Logs.) -0.0235** -0.0230**
(0.0103) (0.0106)
Constant 0.5499*** 0.5689*** 0.5718*** 0.5789*** 0.6621*** 0.6038***
(0.0580) (0.0577) (0.0584) (0.0600) (0.0599) (0.0489)
R2 0.08 0.08 0.08 0.08 0.09 0.09
Observations 1582 1582 1582 1582 1582 1582
All explanatory variables correspond to 2003. Robust standard errors allowing for intra-industry correlation.
Industry dummies included. *** Significance at 1%. ** Significance at 5%. * Significance at 10%.
Table 13: Firm Strategies (Downstream)
Dependent Variable:
Ordinary Least Squares IT Outsourcing
(1) (2) (3) (4) (5) (6)
Business to Business Systems (Downstream) -0.1929 -0.1540 -0.1507 -0.1520 -0.1535 -0.1656 (0.1196) (0.1142) (0.1153) (0.1166) (0.1166) (0.1196)
% Employees with PC -0.0831* -0.0809* -0.0794* -0.0801* -0.1005**
(0.0463) (0.0448) (0.0445) (0.0445) (0.0447)
Business to Business Systems -0.0192 -0.0176 -0.0161 -0.0167 -0.0179
(0.0157) (0.0169) (0.0167) (0.0169) (0.0165)
Customer Relationship Management -0.0095 -0.0007 -0.0010 0.0059
(0.0184) (0.0211) (0.0211) (0.0224)
Supply Chain Management -0.0218 -0.0226 -0.0082
(0.0282) (0.0277) (0.0272)
Integrated Controlling Software -0.0019 -0.0031 0.0212
(0.0206) (0.0207) (0.0212)
Export Activity 0.0086 0.0184
(0.0222) (0.0242)
Total Employees (in Logs.) -0.0233**
(0.0104)
Constant 0.5489*** 0.5756*** 0.5776*** 0.5837*** 0.5800*** 0.6618***
(0.0477) (0.0481) (0.0488) (0.0517) (0.0535) (0.0579)
R2 0.08 0.08 0.08 0.08 0.08 0.09
Observations 1579 1579 1579 1579 1579 1579
All explanatory variables correspond to 2003. Robust standard errors allowing for intra-industry correlation.
Industry dummies included. *** Significance at 1%. ** Significance at 5%. * Significance at 10%.
Table 14: Innovation (Downstream)
Dependent Variable:
Ordinary Least Squares Sales with Product Innovations 2006
(1) (2) (3) (4) (5) (6)
% Employees with PC (Downstream) 0.0771 0.0041 -0.0002 -0.0031 0.0028 -0.0042 (0.0644) (0.0507) (0.0511) (0.0518) (0.0528) (0.0526)
Product Innovation 0.1062*** 0.1038*** 0.1056*** 0.0999*** 0.1014***
(0.0150) (0.0148) (0.0150) (0.0153) (0.0155)
% Employees with PC 0.0712*** 0.0686*** 0.0692*** 0.0664*** 0.0619**
(0.0248) (0.0252) (0.0254) (0.0246) (0.0251)
Customer Relationship Management 0.0118 0.0171 0.0160 0.0172
(0.0095) (0.0118) (0.0119) (0.0119)
Supply Chain Management -0.0138 -0.0164 -0.0134
(0.0109) (0.0104) (0.0100)
Integrated Controlling Software -0.0005 -0.0043 0.0009
(0.0121) (0.0121) (0.0122)
Export Activity 0.0317** 0.0334**
(0.0123) (0.0126)
Total Employees (in Logs.) -0.0052
(0.0031)
Constant 0.0867*** 0.0204 0.0185 0.0219 0.0062 0.0253
(0.0267) (0.0251) (0.0248) (0.0257) (0.0268) (0.0290)
R2 0.08 0.14 0.14 0.15 0.15 0.15
Observations 1369 1369 1369 1369 1369 1369
All explanatory variables correspond to 2003. Robust standard errors allowing for intra-industry correlation.
Industry dummies included. *** Significance at 1%. ** Significance at 5%. * Significance at 10%.
Table 15: Innovation (Downstream)
Dependent Variable
Ordinary Least Squares Cost Reduction with Process Innovation 2006
(1) (2) (3) (4) (5) (6)
% Employees with PC (Downstream) 0.0521*** 0.0421** 0.0429** 0.0444** 0.0441** 0.0432**
(0.0185) (0.0181) (0.0184) (0.0193) (0.0193) (0.0195)
Process Innovation 0.0230*** 0.0207*** 0.0192*** 0.0195*** 0.0198***
(0.0048) (0.0049) (0.0049) (0.0052) (0.0054)
% Employees with PC 0.0106 0.0089 0.0078 0.0080 0.0075
(0.0065) (0.0068) (0.0071) (0.0071) (0.0073)
Supply Chain Management 0.0128*** 0.0088 0.0089 0.0092
(0.0044) (0.0053) (0.0053) (0.0056)
Customer Relationship Management 0.0016 0.0017 0.0019
(0.0054) (0.0054) (0.0053)
Integrated Controlling Software 0.0110* 0.0113** 0.0118**
(0.0056) (0.0052) (0.0051)
Export Activity -0.0021 -0.0019
(0.0057) (0.0055)
Total Employees (in Logs.) -0.0006
(0.0017)
Constant 0.0514*** 0.0332*** 0.0294*** 0.0252** 0.0262** 0.0282**
(0.0106) (0.0105) (0.0106) (0.0109) (0.0114) (0.0136)
R2 0.03 0.04 0.05 0.05 0.05 0.05
Observations 1283 1283 1283 1283 1283 1283
All explanatory variables correspond to 2003. Robust standard errors allowing for intra-industry correlation.
Industry dummies included. *** Significance at 1%. ** Significance at 5%. * Significance at 10%.
Table 16: Innovation (Upstream)
Dependent Variable:
Ordinary Least Squares Sales with Product Innovations 2006
(1) (2) (3) (4) (5) (6)
% Employees with PC (Upstream) 0.0694 0.0099 0.0053 0.0031 0.0095 0.0063 (0.0594) (0.0499) (0.0499) (0.0499) (0.0503) (0.0491)
Product Innovation 0.1062*** 0.1038*** 0.1055*** 0.0999*** 0.1013***
(0.0149) (0.0148) (0.0150) (0.0153) (0.0154)
% Employees with PC 0.0709*** 0.0682** 0.0689** 0.0660** 0.0613**
(0.0255) (0.0259) (0.0261) (0.0254) (0.0258)
Customer Relationship Management 0.0117 0.0169 0.0159 0.0170
(0.0094) (0.0117) (0.0117) (0.0117)
Supply Chain Management -0.0137 -0.0163 -0.0134
(0.0108) (0.0104) (0.0100)
Integrated Controlling Software -0.0005 -0.0043 0.0009
(0.0121) (0.0121) (0.0122)
Export Activity 0.0318** 0.0335**
(0.0122) (0.0126)
Total Employees (in Logs.) -0.0052
(0.0031)
Constant 0.0845*** 0.0180 0.0165 0.0198 0.0035 0.0215
(0.0302) (0.0281) (0.0280) (0.0287) (0.0293) (0.0302)
R2 0.08 0.14 0.14 0.15 0.15 0.15
Observations 1369 1369 1369 1369 1369 1369
All explanatory variables correspond to 2003. Robust standard errors allowing for intra-industry correlation.
Industry dummies included. *** Significance at 1%. ** Significance at 5%. * Significance at 10%.
Table 17: Innovation (Upstream)
Dependent Variable
Ordinary Least Squares Cost Reduction with Process Innovation 2006
(1) (2) (3) (4) (5) (6)
% Employees with PC (Upstream) 0.0517*** 0.0409** 0.0412** 0.0417** 0.0414** 0.0408**
(0.0176) (0.0186) (0.0191) (0.0200) (0.0202) (0.0202)
Process Innovation 0.0229*** 0.0206*** 0.0192*** 0.0194*** 0.0198***
(0.0047) (0.0048) (0.0049) (0.0052) (0.0054)
% Employees with PC 0.0106 0.0089 0.0079 0.0081 0.0074
(0.0068) (0.0070) (0.0074) (0.0074) (0.0075)
Supply Chain Management 0.0128*** 0.0087 0.0089 0.0093
(0.0044) (0.0053) (0.0053) (0.0056)
Customer Relationship Management 0.0018 0.0019 0.0021
(0.0053) (0.0053) (0.0053)
Integrated Controlling Software 0.0107* 0.0110** 0.0118**
(0.0055) (0.0052) (0.0051)
Export Activity -0.0021 -0.0018
(0.0057) (0.0055)
Total Employees (in Logs.) -0.0008
(0.0017)
Constant 0.0480*** 0.0308** 0.0272** 0.0233* 0.0244* 0.0269*
(0.0115) (0.0117) (0.0119) (0.0124) (0.0130) (0.0151)
R2 0.03 0.04 0.05 0.05 0.05 0.05
Observations 1283 1283 1283 1283 1283 1283
All explanatory variables correspond to 2003. Robust standard errors allowing for intra-industry correlation.
Industry dummies included. *** Significance at 1%. ** Significance at 5%. * Significance at 10%.