Open for growth? Evidence on EU countries and sectors

Figures & data

Table 1. Variables: descriptive statistics.

Variable	Description	Source	N	Mean	SD	Min	Max
INNO	Share of innovators	CIS	298	0.341	0.173	0.0411	0.844
INPD	Share of product innovators	CIS	298	0.245	0.155	0	0.781
INPS	Share of process innovators	CIS	298	0.262	0.141	0	0.676
VA	Value added (then log transformed)	Eurostat	298	13,166	27,007	14.30	191,436
BREADTH	Breadth of the open innovation	CIS	298	5.623	0.977	3.125	9
DEPTH	Depth of the open innovation	CIS	298	1.254	0.571	0	5
EXPORT	Share of exporting firms	CIS	298	0.523	0.230	0.0550	0.984
GROUP	Share of firms being part of the group	CIS	298	0.360	0.224	0.0415	1
RD	RD expenditures (then log transformed)	Eurostat	298	0.167	0.607	0	7.394
K	Investment in tangible capital (then log transformed)	Eurostat	298	1435	2629	0.300	20,325
L	Employees (then log transformed)	Eurostat	298	189.3	318.3	0.670	2151

Table 2. Aggregate measures of open innovation across industries and countries.

Breadth						Depth
Industry	Mean	SD	CV	_N		Industry	Mean	SD	CV	_N
68	4.14	0.61	0.15	7		49	0.80	0.21	0.26	11
55-56	4.22	0.80	0.19	7		68	0.86	0.30	0.35	7
59-60	4.76			1		55-56	0.86	0.17	0.19	7
49	5.08	1.06	0.21	11		59-60	0.88			1
52-53	5.15	1.07	0.21	14		41-43	1.01	0.45	0.44	20
13-15	5.32	0.90	0.17	40		50	1.04	0.58	0.56	7
58	5.52	0.92	0.17	15		51	1.16	1.31	1.14	4
41-43	5.59	0.92	0.16	20		58	1.22	0.52	0.43	15
50	5.62	1.48	0.26	7		10-12	1.23	0.38	0.30	24
33	5.63	1.11	0.20	25		24-25	1.25	0.58	0.47	41
24-25	5.66	0.76	0.13	41		13-15	1.29	0.53	0.42	40
10-12	5.74	0.79	0.14	24		28	1.31	0.32	0.25	20
51	5.88	2.13	0.36	4		33	1.33	0.92	0.69	25
28	6.06	0.69	0.11	20		52-53	1.33	0.75	0.57	14
61	6.13	0.77	0.13	17		61	1.36	0.44	0.32	17
69-75	6.15	0.62	0.10	39		19-23	1.38	0.29	0.21	6
19-23	6.30	0.64	0.10	6		69-75	1.53	0.51	0.33	39
Country	Mean	SD	CV	_N		Country	Mean	SD	CV	_N
ES	4.62	0.86	0.19	35		IT	0.81	0.24	0.30	35
BG	4.91	0.56	0.11	20		EE	0.92	0.25	0.27	16
HR	5.00	0.61	0.12	15		BG	0.95	0.39	0.41	20
EE	5.17	0.80	0.16	16		LT	0.97	0.39	0.40	14
SK	5.25	0.67	0.13	14		ES	1.00	0.23	0.23	35
IT	5.28	0.72	0.14	35		HR	1.03	0.26	0.25	15
LT	5.30	0.44	0.08	14		CZ	1.06	0.24	0.22	17
LV	5.67	0.47	0.08	2		SK	1.09	0.40	0.36	14
CY	5.76	0.79	0.14	14		DE	1.17	0.17	0.15	14
HU	5.85	0.31	0.05	22		PT	1.26	0.39	0.31	27
CZ	5.90	0.62	0.11	17		HU	1.51	0.34	0.22	22
PT	5.96	0.79	0.13	27		SI	1.62	0.22	0.13	16
RO	5.96	0.80	0.13	15		RO	1.63	0.47	0.28	15
DE	6.19	0.51	0.08	14		LV	1.67	0.75	0.45	2
SI	6.61	0.44	0.07	16		NO	1.73	0.44	0.25	22
NO	7.36	0.62	0.08	22		CY	2.80	0.78	0.28	14

Notes: NSD, standard deviation; CV, SV/Mean: coefficient of variation. Table A and Table B in the Appendix provide a description of sector and country codes.

Figure 1. Industries in the breadth-depth open innovation space. Table A in Appendix provides a description of sector codes.

Figure 2. European countries in the breadth-depth open innovation space. Table B in the Appendix provides a description of country codes.

Table 3. Variables: correlation matrix.

		1	2	3	4	5	6	7	8	9	10	11	12	13
1	INNO	1
2	INPD	0.93	1
3	INPS	0.93	0.79	1
4	VA (in log)	0.24	0.21	0.20	1
5	BREADTH	0.27	0.37	0.17	−0.04	1
6	BREADTH2	0.25	0.34	0.14	−0.03	0.99	1
7	DEPTH	0.01	0.08	0.01	−0.31	0.55	0.56	1
8	DEPTH2	−0.03	0.02	−0.01	−0.33	0.43	0.45	0.93	1
9	EXPORT	0.33	0.30	0.30	−0.26	0.17	0.14	−0.01	−0.07	1
10	GROUP	0.31	0.33	0.20	0.15	0.47	0.51	0.11	0.07	0.14	1
11	RD (in log)	0.54	0.57	0.43	0.68	0.30	0.28	−0.04	−0.12	0.05	0.20	1
12	L (in log)	0.24	0.20	0.22	0.93	−0.02	−0.01	−0.32	−0.34	−0.24	0.14	0.62	1
13	K (in log)	0.82	0.15	0.09	0.17	−0.19	−0.24	−0.17	−0.20	−0.26	0.76	0.06	0.43	1

Table 4. Initial equations estimating drivers of innovation, product innovation, and process innovation.

	1. (1)	2. (2)	3. (3)	4. (4)	5. (5)	6. (6)
	INNO	INNO	INPD	INPD	INPS	INPS
DEPTH	0.0185 (0.0279)	0.0741* (0.0391)	0.0197 (0.0230)	0.0541 (0.0378)	0.0023 (0.0235)	0.0486 (0.0317)
BREADTH	0.0293** (0.0130)	0.1813** (0.0708)	0.0255* (0.0133)	0.1380** (0.0664)	0.0287*** (0.0106)	0.1512*** (0.0504)
EXPORT	0.1595*** (0.0407)	0.1472*** (0.0413)	0.1318*** (0.0413)	0.1233*** (0.0423)	0.1149*** (0.0307)	0.1049*** (0.0304)
GROUP	0.2434*** (0.0572)	0.2568*** (0.0574)	0.1762** (0.0784)	0.1863** (0.0782)	0.2264*** (0.0448)	0.2372*** (0.0450)
logRD	0.0303*** (0.0057)	0.0266*** (0.0053)	0.0325*** (0.0059)	0.0300*** (0.0058)	0.0187*** (0.0045)	0.0157*** (0.0042)
DEPTH2		−0.0118 (0.0078)		−0.0069 (0.0069)		−0.0099 (0.0067)
BREADTH2		−0.0138** (0.0064)		−0.0102* (0.0061)		−0.0111** (0.0045)
Constant	0.0157 (0.1141)	−0.4478** (0.2028)	−0.1319 (0.1121)	−0.4699** (0.1956)	0.0590 (0.0763)	−0.3158** (0.1399)
N	298	298	298	298	298	298
R^2	0.726	0.739	0.641	0.648	0.751	0.763
adj. R^2	0.7045	0.7157	0.6072	0.6175	0.7307	0.7422
VIF	8.48	18.76	8.48	18.76	8.48	18.76

Note: Robust standard errors adjusted for correlation of repeated country-industry combinations in brackets. Country and CIS-wave dummies included.

*p < 0.10.

**p < 0.05.

***p < 0.01.

Figure 3. Average marginal effects of R&D expenditures and open innovation on value added with 95% confidence intervals.

Table 5. Cobb Douglas on value added.

	(1)	(2)	(3)	(4)
	logVA	logVA	logVA	logVA
logL	0.3216*** (0.0759)	0.3149*** (0.0767)	0.3217*** (0.0734)	0.3183*** (0.0761)
logK	0.4951*** (0.0581)	0.4993*** (0.0587)	0.4997*** (0.0564)	0.4971*** (0.0581)
logRD	0.0505** (0.0242)	0.0657*** (0.0238)	−0.2330* (0.1192)	−0.0561 (0.0681)
BREADTH		−0.0869 (0.0713)	−0.1820** (0.0898)	−0.0929 (0.0716)
DEPTH		0.0601 (0.1063)	0.0659 (0.1033)	−0.0833 (0.1404)
logRD*BREADTH			0.0500*** (0.0189)
logRD*DEPTH				0.0959** (0.0469)
Constant	2.7421*** (0.3037)	3.1125*** (0.4143)	4.2151*** (0.4961)	3.8923*** (0.3719)
N	298	298	298	298
R^2	0.952	0.952	0.954	0.954
adj. R^2	0.9483	0.9484	0.9499	0.9497
VIF	8.69	8.56	9.35	4.11

Notes: Robust standard errors adjusted for correlation of repeated country-industry combinations in brackets. Country and CIS-wave dummies included.

*p < 0.10.

**p < 0.05.

***p < 0.01.

Table A1. Sectors covered.

Nace2	Sector description	Count
10-12	Manufacture of food, beverages, and tobacco products	24
13-15	Manufacture of textiles, wearing apparel, and leather and related products	40
19-23	Manufacture of coke and refined petroleum products, chemicals and chemical products, of basic pharmaceutical products and pharmaceutical preparations, rubber and plastic products, and other non-metallic mineral products	6
24-25	Manufacture of basic metals, of fabricated metal products, except machinery and equipment	41
28	Manufacture of machinery and equipment n.e.c.	20
33	Other Manufacturing	25
41-43	Construction	20
49	Land transport and transport via pipelines	11
50	Water transport	7
51	Air transport	4
52-53	Warehousing and support activities for transportation, Postal and courier activities	14
55-56	Accommodation and food service activities	7
58	Publishing activities	15
59-60	Motion picture, video, and television programme production, sound recording and music publishing activities; Programming and broadcasting activities	1
61	Telecommunications	17
68	Real estate activities	7
69-75	Legal, accounting, management, architecture, engineering, technical testing, and analysis activities, Scientific research and development, other professional, scientific, and technical activities	39
	TOTAL	298

Source: calculation by authors.

Table A2. Countries covered.

Country	Code
Bulgaria	BG
Cyprus	CY
Croatia	HR
Czech Republic	CZ
Estonia	EE
Germany	DE
Spain	ES
Hungary	HU
Italy	IT
Latvia	LV
Lithuania	LT
Norway	NO
Portugal	PT
Romania	RO
Slovakia	SK
Slovenia	SI

Table A3. Cobb Douglas on Value Added with one year lag (t + 1) and two year lags (t + 2).

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
	logVA(t + 1)	logVA(t + 1)	logVA(t + 1)	logVA(t + 1)	logVA(t + 2)	logVA(t + 2)	logVA(t + 2)	logVA(t + 2)
logL	0.3160*** (0.0769)	0.3100*** (0.0778)	0.3168*** (0.0743)	0.3132*** (0.0772)	0.2964*** (0.0764)	0.2903*** (0.0775)	0.2974*** (0.0737)	0.2936*** (0.0768)
logK	0.5150*** (0.0590)	0.5187*** (0.0598)	0.5191*** (0.0575)	0.5167*** (0.0593)	0.5162*** (0.0584)	0.5193*** (0.0593)	0.5198*** (0.0568)	0.5172*** (0.0588)
logRD	0.0542** (0.0257)	0.0676*** (0.0254)	−0.2261* (0.1281)	−0.0448 (0.0733)	0.0668** (0.0257)	0.0808*** (0.0262)	−0.2296* (0.1272)	−0.0373 (0.0730)
BREADTH		−0.0761 (0.0741)	−0.1696* (0.0936)	−0.0817 (0.0745)		−0.0678 (0.0748)	−0.1666* (0.0952)	−0.0737 (0.0753)
DEPTH		0.0513 (0.1084)	0.0570 (0.1073)	−0.0809 (0.1410)		0.0167 (0.1005)	0.0227 (0.0997)	−0.1223 (0.1341)
logRD*BREADTH			0.0491**				0.0519**
			(0.0200)				(0.0200)
logRD*DEPTH				0.0884*				0.0930*
				(0.0490)				(0.0483)
Constant	2.4452*** (0.3121)	2.7721*** (0.4248)	3.9271*** (0.5144)	3.5982*** (0.3853)	2.4805*** (0.2251)	2.8204*** (0.3890)	4.0839*** (0.5175)	3.7353*** (0.3868)
N	298	298	298	298	298	298	298	298
R^2	0.947	0.947	0.949	0.948	0.946	0.947	0.948	0.948
adj. R^2	0.9429	0.9428	0.9442	0.9439	0.9423	0.9423	0.9439	0.9434