The determinants of innovation: What is the role of risk?
AbstractBecause of its importance in understanding and explaining growth, the topic of innovation has received a huge attention in the economic literature. However, our knowledge of the factors that inuence in- novation and its related activities is not as exhaustive as it could be. The present study aims at contributing to analyse the determinants of innovation, with a special focus on rm risk. Employing a rich sample of Italian manufacturing rms, we tested for the impact on innovation of the riskiness of the rm, as proxied by the probability of default. We found that riskiness of enterprise reduces the tendency to innovate for the rms. The main channel through which rm risk aects innovation capability appears to be that of innovation nancing.
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Bibliographic InfoPaper provided by Dipartimento di Scienze Economiche e Metodi Matematici - Università di Bari in its series series with number 0032.
Date of creation: Jul 2010
Date of revision: Jul 2010
Technological Change; Financial Risk and Risk Management;
Other versions of this item:
- Pierluigi Murro, 2013. "The Determinants Of Innovation: What Is The Role Of Risk?," Manchester School, University of Manchester, vol. 81(3), pages 293-323, 06.
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-08-06 (All new papers)
- NEP-CSE-2010-08-06 (Economics of Strategic Management)
- NEP-ENT-2010-08-06 (Entrepreneurship)
- NEP-INO-2010-08-06 (Innovation)
- NEP-KNM-2010-08-06 (Knowledge Management & Knowledge Economy)
- NEP-RMG-2010-08-06 (Risk Management)
- NEP-TID-2010-08-06 (Technology & Industrial Dynamics)
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