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Demand and Innovation in European Industries

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  • Francesco Crespi
  • Mario Pianta

Abstract

After the decade-old debate between demand-pull and technology-push perspectives, demand seems to have fallen out of fashion. In this paper two models are proposed on the determinants of general innovative activities and on the market impact of product innovations. The models combine the supply and demand engines of innovation, and qualify the type of innovative efforts, distinguishing between those oriented towards cost reductions or towards technological competitiveness. The models are tested at the industry level for 22 manufacturing sectors and 17 services sectors in six European countries. The results show that efforts at technological competitiveness, product oriented strategies and the growth of household consumption and export are the key determinants of innovation and performances.

Suggested Citation

  • Francesco Crespi & Mario Pianta, 2007. "Demand and Innovation in European Industries," Economia politica, Società editrice il Mulino, issue 1, pages 79-112.
  • Handle: RePEc:mul:jb33yl:doi:10.1428/24090:y:2007:i:1:p:79-112
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    Cited by:

    1. Cristiano Antonelli & Francesco Crespi & Giuseppe Scellato, 2013. "Internal and external factors in innovation persistence," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 22(3), pages 256-280, April.
    2. Bramucci, Alessandro, 2016. "Offshoring, employment and wages," IPE Working Papers 71/2016, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    3. Alessandro Bramucci, 2015. "Offshoring, Employment and Wages," Working Papers 1506, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2015.
    4. Francesco Crespi & Mario Pianta, 2008. "Diversity in innovation and productivity in Europe," Journal of Evolutionary Economics, Springer, vol. 18(3), pages 529-545, August.

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