Corporate Skills as an Ex-Ante Incentive to R&D Investment

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Corporate Skills as an Ex-Ante Incentive to R&D Investment

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Mariacristina Piva () (Università Cattolica Piacenza)
Marco Vivarelli () (Università Cattolica Piacenza, CSGR Warwick, Max Planck Institute of Economics Jena, and IZA)

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Abstract

Using a balanced panel of 215 Italian manufacturing firms over the 1995-2000 period, this paper investigates the determinants of R&D investment at the level of the firm. While finding further support for the well-established technology-push and demand-pull hypotheses, this study also tests the role of skill endowment in increasing a firm’s R&D investment. Consistently with the related managerial and economic literature, our basic result is that current skill endowment may significantly and positively influence a firm’s current R&D decision. These microeconometric results have been obtained using a Least Squares Dummy Variable Corrected (LSDVC) estimator, a recently-proposed panel data technique particularly suitable for small samples.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2562.

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Length: 27 pages
Date of creation: Jan 2007
Date of revision:
Handle: RePEc:iza:izadps:dp2562

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Find related papers by JEL classification:
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives

This paper has been announced in the following NEP Reports:

NEP-ALL-2007-02-17 (All new papers)
NEP-BEC-2007-02-17 (Business Economics)
NEP-INO-2007-02-17 (Innovation)
NEP-IPR-2007-02-17 (Intellectual Property Rights)
NEP-TID-2007-02-17 (Technology & Industrial Dynamics)

Cited by:
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Alessandra Catozzella & Marco Vivarelli, 2007. "The Catalysing Role of In-House R&D in Fostering the Complementarity of Innovative Inputs," IZA Discussion Papers 3126, Institute for the Study of Labor (IZA). [Downloadable!]
Daniele Cerrato & Mariacristina Piva, 2007. "The Internationalization of Small and Medium-sized Enterprises: the Effect of Family Management, Human Capital and Foreign Ownership," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises0748, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE). [Downloadable!]

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