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Product innovation and the decision to invest in fixed capital assets: Evidence from an SME survey in six European Union member states

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Author Info

  • Skuras, Dimitris
  • Tsegenidi, Kyriaki
  • Tsekouras, Kostas

Abstract

This work explores the relationship between product innovation and the decision to invest in fixed capital assets among a sample of SMEs in six European Union countries located in both peripheral and more central areas. We find that the presence of product innovation reduces the probability to invest. A firm's size exerts a direct, inverted U-shape effect on the probability to invest and an indirect effect through the linear effect of size on the probability to innovate. The gap in the probability to invest between innovative and non-innovative firms increases with size.

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 37 (2008)
Issue (Month): 10 (December)
Pages: 1778-1789

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Handle: RePEc:eee:respol:v:37:y:2008:i:10:p:1778-1789

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Web page: http://www.elsevier.com/locate/respol

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Keywords: SMEs Innovation Investment Peripheral areas;

References

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Citations

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Cited by:
  1. Spyros Arvanitis & Areti Gkypali & Kostas Tsekouras, 2014. "Knowledge Base, Exporting Activities, Innovation Openness and Innovation Performance: A SEM Approach Towards a Unifying Framework," KOF Working papers 14-361, KOF Swiss Economic Institute, ETH Zurich.
  2. Ozer, Muammer, 2009. "The roles of product lead-users and product experts in new product evaluation," Research Policy, Elsevier, Elsevier, vol. 38(8), pages 1340-1349, October.
  3. James Foreman-Peck, 2013. "Effectiveness and efficiency of SME innovation policy," Small Business Economics, Springer, Springer, vol. 41(1), pages 55-70, June.
  4. Wioletta Czemiel-Grzybowska & Monika Walicka, 2013. "R&D activity, innovativeness and enterprise exporting," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, Uniwersytet Mikolaja Kopernika, vol. 12(4), pages 613-626, December.

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