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Do Organizational Forms matter? An Econometric Analysis of Innovativeness in the German Wastewater Sector

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  • Tauchmann, Harald
  • Clausen, Hartmut

Abstract

In the German wastewater sector, innovations are often regarded to be the key to both more efficient service provision and reduction of environmental and health-related problems. However, it is unclear what factors foster these innovations. One possible candidate factor is increased competition in this sector and the entry of private service providers. So far, there is no empirical evidence to answer the question of whether private firms are, in fact, more innovative than others. To address this question, we conducted a survey among German firms that provide wastewater services and estimated a structural model to explain firms? innovativeness. Our results suggest that firm size improves innovativeness; however, private service providers are not significantly more innovative than providers operated by local governments.We conclude that restructuring the sector to form larger units may foster innovative activities even without any changes in the legal framework.

Suggested Citation

  • Tauchmann, Harald & Clausen, Hartmut, 2004. "Do Organizational Forms matter? An Econometric Analysis of Innovativeness in the German Wastewater Sector," RWI Discussion Papers 22, RWI - Leibniz-Institut für Wirtschaftsforschung.
    • Handle: RePEc:zbw:rwidps:22
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    References listed on IDEAS

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    1. Schmidt, Christoph & Fertig, Michael, 2002. "The Perception of Foreigners and Jews in Germany - A Structural Analysis of a Large Opinion Survey," CEPR Discussion Papers 3222, C.E.P.R. Discussion Papers.
    2. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
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    Cited by:

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    2. Marques, Rui Cunha & De Witte, Kristof, 2011. "Is big better? On scale and scope economies in the Portuguese water sector," Economic Modelling, Elsevier, vol. 28(3), pages 1009-1016, May.
    3. Haug, Peter, 2007. "Local Government Control and Efficiency of the Water Industry: An Empirical Analysis of Water Suppliers in East Germany," IWH Discussion Papers 3/2007, Halle Institute for Economic Research (IWH).

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    More about this item

    Keywords

    Wastewater services; innovativeness; structural econometric model;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities

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