Many papers have been written about the effect of firm size on innovativeness, revealing a positive, a negative or a mixed impact. To this day, the so-called Schumpeterian hypothesis of the above-average innovativeness of large firms has neither been confirmed nor rejected, often because of insufficient data or a too-short observation period. Many studies concentrate only on a specific region or sector, or they analyze a very short time period. Windows of technological opportunities, providing technological booms for both firms and sectors, have not yet been investigated. An analysis of Germany’s chemical, metal and electrical-engineering sectors between 1877 and 1932 reveals that the sector-specific long-term relationship between firm size and innovativeness is negative, except during times of specific technological booms. In combination with firm-specific characteristics, this new aspect can contribute to a better understanding of the long-term relationship between firm size and innovativeness.Innovation, Firm Size, Technology, Patents

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In this paper, we use both patents' individual life span and foreign patenting activities in Germany to identify the most valuable patents of the 21 most innovative countries (except for Germany) from the European Core, the European periphery and overseas between 1877 and 1932. Our empirical analysis reveals that important characteristics of the international distribution of foreign patents are time-invariant. In particular, the distribution of foreign patents across countries in the late nineteenth and early twentieth centuries was as highly skewed as it was in the late twentieth century-and even dominated by the same major research economies. Our analysis suggests that firms' technological advantages were influenced both by exogenous local factors, such as the countries' resource endowment, and by endogenous factors, such as the national education and research system or the countries' actual stage of economic development.

Using a newly developed dataset comprising detailed information about individual German workers in the Third Reich, this paper introduces compulsory workbooks as an important source for both economic and social historical research. The established dataset allows us to investigate questions concerning both the German workforce’s mobility as well as the efficiency of the Dienstverpflichtung introduced in July 1938, which allowed the regime to allocate workers to firms and sectors of strategic importance.

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