The objective of this project is to investigate the dynamics in the links between firm characteristics, innovation, firm performances and financial conditions using a panel of microdata from Dutch manufacturing and services contained in the MICRONOOM database from CBS. Our ultimate objective is to specify a dynamic econometric model which incorporates insights from economic theory regarding the reasons for, and the structure of, the dynamics of innovation and to estimate it from panel data, thereby appropriately accounting for specific features of the data (such as heterogeneity, sample selection, and endogenous attrition).
