R&D, firm size, and product innovation dynamics
AbstractThis paper addresses a debated issue in the economics innovation literature, namely the existence of increasing return to R&D expenditures and firm size on innovation output. It further explores how structural characteristics of the firm as well as contextual factors affect the dynamics of product innovation over a relatively long period of time. Taking advantage of an original and unique database comprising innovation data recorded on a monthly base we show that: (i) a negative binomial distribution model is able to predict with great accuracy the probability of having a given number of product announcement sent out in a month; (ii) constant returns to size and R&D expenditure may reasonably characterize the innovation production function of sampled firms; (iii) vertically integrated manufacturers as well as producers operating a larger product portfolio exhibit a higher propensity to introduce new products than their specialized competitors.
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Bibliographic InfoPaper provided by Department of Computer and Management Sciences, University of Trento, Italy in its series DISA Working Papers with number 0803.
Length: 21 pages
Date of creation: Jun 2008
Date of revision: 18 Jun 2008
Postal: DISA Università degli Studi di Trento via Inama, 5 I-38122 Trento TN Italy
Other versions of this item:
- NEP-ALL-2008-07-30 (All new papers)
- NEP-COM-2008-07-30 (Industrial Competition)
- NEP-CSE-2008-07-30 (Economics of Strategic Management)
- NEP-INO-2008-07-30 (Innovation)
- NEP-IPR-2008-07-30 (Intellectual Property Rights)
- NEP-KNM-2008-07-30 (Knowledge Management & Knowledge Economy)
- NEP-MIC-2008-07-30 (Microeconomics)
- NEP-TID-2008-07-30 (Technology & Industrial Dynamics)
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