Firm Behavior Across Increasing Levels of Innovation Activity

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February 28, 2018 - John T. Mann

The paper examines competitive behaviors of rural and urban firms across increasing levels of innovation activity intensity. Data are from the 2014 National Survey of Business Competitiveness which includes 10,952 firm-level observations and 257 variables, 41 of which are measures of innovation. Four innovation activity intensity categories are constructed, ranging from “non-innovative” to “highly innovative.” Average partial effects (APE’s) from a multinomial logit regression reveal differences in behaviors of highly innovative rural and urban firms are likely from reduced competitive pressures and limited spillovers access. However, moderately innovative rural and urban firms appear more similar in behaviors.

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