Innovation over the industry life-cycle: Evidence from EU manufacturing

Jaap W. B. Bos*, Claire Economidou, Mark W. J. L. Sanders

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review


Empirical research has revealed some regularities regarding the innovation that takes place over the industry life-cycle. First, innovation is high when an industry is young and low when the industry matures, and second, product innovation decreases with industry maturity, while process innovation increases. The implications of these regularities are profound, but evidence is to date largely case based and it is hard to generalize and draw policy conclusions. We use a flexible measure of maturity and a novel modeling approach to investigate innovation patterns for 21 European manufacturing industries. Our results strongly support both assertions and lend support to life-cycle based R&D-policy. (C) 2012 Elsevier B.V. All rights reserved.
Original languageEnglish
Pages (from-to)78-91
Number of pages14
JournalJournal of Economic Behavior & Organization
Publication statusPublished - 1 Feb 2013


  • Intertemporal Firm Choice: Investment, Capacity, and Financing
  • Industry Studies: Manufacturing: General
  • Innovation and Invention: Processes and Incentives
  • Technological Change: Government Policy


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