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Upwind sailors. Financial profile of innovative Italian firms during the double-dip recession

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  • Daniele Pianeselli

    (Bank of Italy)

Abstract

We examine the issue of patents of Italian non-financial firms over the period 2008– 2012, during which the Italian economy was hit by two almost consecutive recessions. We classify firms according to their patenting activity, taking into consideration their financial characteristics. We find that innovation is concentrated in the manufacturing sector, where very few large firms maintain a persistent level of inventive capacity. Firms increased their average patenting slightly during the crisis compared to the period 2003–2007. Since Italian innovating firms are large and mature, a higher cash flow and a lower indebtedness allow them to fund patent-generating activity using internal resources. Moreover, innovating firms grow faster than non-innovating ones, even during recessions.

Suggested Citation

  • Daniele Pianeselli, 2019. "Upwind sailors. Financial profile of innovative Italian firms during the double-dip recession," Questioni di Economia e Finanza (Occasional Papers) 515, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_515_19
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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2019-0515/QEF_515_19.pdf
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    References listed on IDEAS

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    Cited by:

    1. Andrea Orame & Daniele Pianeselli, 2023. "Thinking the green transition: evidence from the automotive industry," Questioni di Economia e Finanza (Occasional Papers) 767, Bank of Italy, Economic Research and International Relations Area.

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    More about this item

    Keywords

    innovation; crisis; financial profile; Italian firms;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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