This paper discusses the relationship between a company's investment in innovation and its success in introducing new product and/or process innovations. In doing so, this analysis departs from the standard approach which puts forward a homogenous R&D-based knowledge production function by introducing different types of innovation investments (R&D and technology acquisition) for different sets of companies. Using the Community Innovation Survey (CIS) dataset comprising more than 3,000 Italian manufacturing companies, the econometric analysis adopts a set of techniques which allows to control for the sample selection, endogeneity and simultaneity problems which arise when dealing with CIS data. The main findings are summarised as follows: (1) beyond the acknowledged effect of R&D in increasing the probability of success of product innovation, a larger-than-expected role is played by technology acquisition in the innovation process; (2) the relative importance of R&D and technology acquisition varies significantly across different types of companies where crucial dimensions of analysis are company size and the technological domain of a sector.

Conte, A., Vivarelli, M., Succeeding in innovation: key insights on product and process innovations drawn from company data, <<EMPIRICAL ECONOMICS>>, 2014; 47 (4): 1317-1340. [doi:10.1007/s00181-013-0779-1] [http://hdl.handle.net/10807/63846]

Succeeding in innovation: key insights on product and process innovations drawn from company data

Conte, Andrea;Vivarelli, Marco
2014

Abstract

This paper discusses the relationship between a company's investment in innovation and its success in introducing new product and/or process innovations. In doing so, this analysis departs from the standard approach which puts forward a homogenous R&D-based knowledge production function by introducing different types of innovation investments (R&D and technology acquisition) for different sets of companies. Using the Community Innovation Survey (CIS) dataset comprising more than 3,000 Italian manufacturing companies, the econometric analysis adopts a set of techniques which allows to control for the sample selection, endogeneity and simultaneity problems which arise when dealing with CIS data. The main findings are summarised as follows: (1) beyond the acknowledged effect of R&D in increasing the probability of success of product innovation, a larger-than-expected role is played by technology acquisition in the innovation process; (2) the relative importance of R&D and technology acquisition varies significantly across different types of companies where crucial dimensions of analysis are company size and the technological domain of a sector.
2014
Inglese
Conte, A., Vivarelli, M., Succeeding in innovation: key insights on product and process innovations drawn from company data, <<EMPIRICAL ECONOMICS>>, 2014; 47 (4): 1317-1340. [doi:10.1007/s00181-013-0779-1] [http://hdl.handle.net/10807/63846]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/63846
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