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Public procurement for innovation: firm-level evidence from Italy and Norway

Author

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  • Marialuisa Divella
  • Alessandro Sterlacchini

Abstract

Controlling for factors affecting the participation in the procurement market, this article attempts to identify the main determinants of firms’ propensity to undertake innovative activities as part of public procurement contracts. The empirical analysis is carried out by using micro-data from two Community Innovation Surveys for Italian and Norwegian firms. We find that small- and medium-sized firms, as opposed to larger companies, have a lower capability to enter into the procurement market; however, once they succeed, they are equally capable of offering innovative solutions to public buyers. Another major result regards firms’ cooperation with universities and public research institutes, which seems to play a key role in order to facilitate firms’ involvement in public procurement for innovation. Although there are some differences in the estimated coefficients of explanatory variables, these results are consistent between Italy and Norway.

Suggested Citation

  • Marialuisa Divella & Alessandro Sterlacchini, 2020. "Public procurement for innovation: firm-level evidence from Italy and Norway," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 29(6), pages 1505-1520.
    • Handle: RePEc:oup:indcch:v:29:y:2020:i:6:p:1505-1520.
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    File URL: http://hdl.handle.net/10.1093/icc/dtaa023
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    Citations

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    Cited by:

    1. Jessica Catalano & Francesco Giffoni & Paolo Castelnovo, 2021. "The impact of space procurement on suppliers: Evidence from Italy," Working Papers 202102, CSIL Centre for Industrial Studies.
    2. Claudiu Tiberiu Albulescu & Camélia Turcu, 2022. "Productivity, financial performance, and corporate governance: evidence from Romanian R&D firms," Applied Economics, Taylor & Francis Journals, vol. 54(51), pages 5956-5975, November.
    3. Serenella Caravella & Francesco Crespi, 2022. "On the growth impact of different eco-innovation business strategies," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(2), pages 657-683, July.

    More about this item

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement

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