-test-

[Joost Poel]

Dear ,


Many thanks for your helpful comments regarding my patent data. Regarding your last comment, I guess in my enthusiasm I forgot to follow-up on your advice.

Besides the patent data, I am also working on a dataset based on accounting data, which already includes another innovation proxy: R&D expenditures.

* Example generated by -dataex-. To install: ssc install dataex
clear
input long ID double(Turnover RDexp TA empl) long sector float(survivor POST NL Post_NL)
1 5445000 0 5831000 16335 12 1 0 0 0
1 6083000 0 7300000 18180 12 1 0 0 0
1 6052000 0 7325000 17833 12 1 0 0 0
1 5982000 0 7782000 17371 12 1 0 0 0
1 6074000 0 7450000 16804 12 1 1 0 0
1 7035000 0 8511000 17371 12 1 1 0 0
1 6418000 0 8312000 15788 12 1 1 0 0
1 6458000 0 8243000 15859 12 1 1 0 0
2       . .       .     . 12 . 0 0 0
2       . .       .     . 12 . 0 0 0
2       . .       .     . 12 . 0 0 0
2 2254200 0 2668700 35313 12 0 0 0 0
2 2255900 0 2580000 34180 12 0 1 0 0
2 2295700 0 2473500 33616 12 0 1 0 0
2 2355700 0 2402900    32 12 0 1 0 0
2 2407300 0 2231200 29922 12 0 1 0 0
3    9133 0 1164018    75 11 1 0 0 0
3   13720 0 1327425    75 11 1 0 0 0
3  532497 0 1837167  3611 11 1 0 0 0
3  851452 0 1520790  4158 11 1 0 0 0
end
label values ID ID_bvd
label def ID_bvd 1 "BE0202239951", modify
label def ID_bvd 2 "BE0214596464", modify
label def ID_bvd 3 "BE0220324117", modify
label values sector sector
label def sector 11 "Other services", modify
label def sector 12 "Post & telecommunications", modify

While exploring the first steps in the analyses, I find myself wondering why, in the FE estimation as well in Pooled OLS, one extra indicator value is omitted in the regression due to collinearity, e.i., I specified the country base-level as NL, but also FR is omitted. The same goes for the year dummy: I set 2005 as base level and the regression omits 2012 additionally to 2005. Could you advice me on the reason for this omission?

I used:

reg Turnover RDexp TA empl sector survivor POST NL Post_NL i.year ib(4).country i.sector, robust cluster(ID)

Best regards,