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R&D, firm size and incremental product innovation

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Author Info

  • Marco Corsino
  • Giuseppe Espa
  • Rocco Micciolo

Abstract

This article addresses an issue that is debated in the economics of innovation literature, namely the existence of increasing returns to R&D expenditures and firm size, in product innovation. It explores further how the firm's structural characteristics and contextual factors affect the sustained introduction of new components over a relatively long time period. Taking advantage of an original and unique database comprising information on new product announcements by leading semiconductor producers, we show that: (i) decreasing returns to size and R&D expenditures characterize the innovation production function of the sampled firms; (ii) producers operating a larger product portfolio exhibit a higher propensity to introduce new products than their specialized competitors; (iii) aging has positive bearings on the firm's ability to innovate.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/10438599.2011.562354
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 20 (2011)
Issue (Month): 5 ()
Pages: 423-443

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Handle: RePEc:taf:ecinnt:v:20:y:2011:i:5:p:423-443

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Related research

Keywords: R&D; firm size; product innovation; semiconductor industry;

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Cited by:
  1. Acemoglu, Daron & Akcigit, Ufuk & Bloom , Nicholas & Kerr , William, 2013. "Innovation, reallocation and growth," Research Discussion Papers, Bank of Finland 22/2013, Bank of Finland.

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