A Microeconometric Note on Product Innovation and Product Innovation Advertising
		Status: forthcoming in Economics of Innovation and New Technology
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	Abstract: This paper seeks to explain while more than half of the German service sector firms that introduce a product innovations do not advertise their new or markedly improved product. One part of the explanation is that they do not need to because they are closely related to their customers anyway, another part of the explanation is that product innovation and product innovation are strategic substitutes.
	Keywords: strategic substitutes, product innovation, product innovation advertising, service sector, bivariate probit model with selectivity JEL classification: C34, L2 Status: under revision
		Additional information Appendix A:  estimation method Appendix B: the Mannheim Innovation Panel in the service sector Appendix C: descriptive statistics Appendix D: specification checks