Time-period and industry heterogeneity of innovation activity in Japan

Michiyuki Yagi, Shunsuke Managi

Research output: Contribution to journalArticle

Abstract

This study examines time-period and industry heterogeneity of innovation activity in Japan from 1964 to 2006 using patent data and non-consolidated firm data. This study focuses on the following three periods, based on changes of the Japanese patent system, in and non-manufacturing industries: (I) before 1976; (II) 1976-1987; and (III) after 1988. Specifically, for each degree of patent protection in each industry, this study examines how innovation activities are affected by the following determinants found in the innovation literature: size, market competition, and search variety (depth and scope). Empirical results show that when using the entire sample from 1964 to 2006, the size effect on innovation is significantly positive. In addition, the effects of market competition and search variety on innovation are inverse-U. When considering time-period heterogeneity, the effects of size and search variety are similar to the entire period; however, the inverse-U effect of market competition is broken after 1988. On the other hand, when considering industry heterogeneity, the effects of size and search variety are similar to the entire sample, but differ between manufacturing and non-manufacturing industries. In addition, the effect of market competition is not statistically significant in either industry.

Original languageEnglish
Pages (from-to)100-119
Number of pages20
JournalEconomic Analysis and Policy
Volume50
DOIs
Publication statusPublished - Jun 1 2016

Fingerprint

Japan
Industry
Innovation activities
Market competition
Innovation
Manufacturing
Patent data
Industry studies
Patent system
Patent protection
Empirical results
Time study

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Economics, Econometrics and Finance (miscellaneous)

Cite this

Time-period and industry heterogeneity of innovation activity in Japan. / Yagi, Michiyuki; Managi, Shunsuke.

In: Economic Analysis and Policy, Vol. 50, 01.06.2016, p. 100-119.

Research output: Contribution to journalArticle

@article{dfe1cde609794c6db84088b201ce560e,
title = "Time-period and industry heterogeneity of innovation activity in Japan",
abstract = "This study examines time-period and industry heterogeneity of innovation activity in Japan from 1964 to 2006 using patent data and non-consolidated firm data. This study focuses on the following three periods, based on changes of the Japanese patent system, in and non-manufacturing industries: (I) before 1976; (II) 1976-1987; and (III) after 1988. Specifically, for each degree of patent protection in each industry, this study examines how innovation activities are affected by the following determinants found in the innovation literature: size, market competition, and search variety (depth and scope). Empirical results show that when using the entire sample from 1964 to 2006, the size effect on innovation is significantly positive. In addition, the effects of market competition and search variety on innovation are inverse-U. When considering time-period heterogeneity, the effects of size and search variety are similar to the entire period; however, the inverse-U effect of market competition is broken after 1988. On the other hand, when considering industry heterogeneity, the effects of size and search variety are similar to the entire sample, but differ between manufacturing and non-manufacturing industries. In addition, the effect of market competition is not statistically significant in either industry.",
author = "Michiyuki Yagi and Shunsuke Managi",
year = "2016",
month = "6",
day = "1",
doi = "10.1016/j.eap.2016.03.002",
language = "English",
volume = "50",
pages = "100--119",
journal = "Economic Analysis and Policy",
issn = "0313-5926",
publisher = "Elsevier BV",

}

TY - JOUR

T1 - Time-period and industry heterogeneity of innovation activity in Japan

AU - Yagi, Michiyuki

AU - Managi, Shunsuke

PY - 2016/6/1

Y1 - 2016/6/1

N2 - This study examines time-period and industry heterogeneity of innovation activity in Japan from 1964 to 2006 using patent data and non-consolidated firm data. This study focuses on the following three periods, based on changes of the Japanese patent system, in and non-manufacturing industries: (I) before 1976; (II) 1976-1987; and (III) after 1988. Specifically, for each degree of patent protection in each industry, this study examines how innovation activities are affected by the following determinants found in the innovation literature: size, market competition, and search variety (depth and scope). Empirical results show that when using the entire sample from 1964 to 2006, the size effect on innovation is significantly positive. In addition, the effects of market competition and search variety on innovation are inverse-U. When considering time-period heterogeneity, the effects of size and search variety are similar to the entire period; however, the inverse-U effect of market competition is broken after 1988. On the other hand, when considering industry heterogeneity, the effects of size and search variety are similar to the entire sample, but differ between manufacturing and non-manufacturing industries. In addition, the effect of market competition is not statistically significant in either industry.

AB - This study examines time-period and industry heterogeneity of innovation activity in Japan from 1964 to 2006 using patent data and non-consolidated firm data. This study focuses on the following three periods, based on changes of the Japanese patent system, in and non-manufacturing industries: (I) before 1976; (II) 1976-1987; and (III) after 1988. Specifically, for each degree of patent protection in each industry, this study examines how innovation activities are affected by the following determinants found in the innovation literature: size, market competition, and search variety (depth and scope). Empirical results show that when using the entire sample from 1964 to 2006, the size effect on innovation is significantly positive. In addition, the effects of market competition and search variety on innovation are inverse-U. When considering time-period heterogeneity, the effects of size and search variety are similar to the entire period; however, the inverse-U effect of market competition is broken after 1988. On the other hand, when considering industry heterogeneity, the effects of size and search variety are similar to the entire sample, but differ between manufacturing and non-manufacturing industries. In addition, the effect of market competition is not statistically significant in either industry.

UR - http://www.scopus.com/inward/record.url?scp=84961880604&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84961880604&partnerID=8YFLogxK

U2 - 10.1016/j.eap.2016.03.002

DO - 10.1016/j.eap.2016.03.002

M3 - Article

AN - SCOPUS:84961880604

VL - 50

SP - 100

EP - 119

JO - Economic Analysis and Policy

JF - Economic Analysis and Policy

SN - 0313-5926

ER -