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Succeeding in innovation: key insights on the role of R&D and technological acquisition drawn from company data

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  • Andrea Conte

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  • Marco Vivarelli

Abstract

This paper discusses the relationship between a company’s investment in innovation and its success in introducing new product and/or process innovations. In doing so, this analysis departs from the standard approach which puts forward a homogenous R&D-based knowledge production function by introducing different types of innovation investments (R&D and technology acquisition) for different sets of companies. Using the Community Innovation Survey (CIS) dataset comprising more than 3,000 Italian manufacturing companies, the econometric analysis adopts a set of techniques which allows to control for the sample selection, endogeneity and simultaneity problems which arise when dealing with CIS data. The main findings are summarised as follows: (1) beyond the acknowledged effect of R&D in increasing the probability of success of product innovation, a larger-than-expected role is played by technology acquisition in the innovation process; (2) the relative importance of R&D and technology acquisition varies significantly across different types of companies where crucial dimensions of analysis are company size and the technological domain of a sector. Copyright European Union 2014

Suggested Citation

  • Andrea Conte & Marco Vivarelli, 2014. "Succeeding in innovation: key insights on the role of R&D and technological acquisition drawn from company data," Empirical Economics, Springer, vol. 47(4), pages 1317-1340, December.
  • Handle: RePEc:spr:empeco:v:47:y:2014:i:4:p:1317-1340
    DOI: 10.1007/s00181-013-0779-1
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    Cited by:

    1. Giovanni Dosi & Mariacristina Piva & Maria Enrica Virgillito & Marco Vivarelli, 2019. "Technology and employment in a vertically connected economy: a model and an empirical test," DISCE - Quaderni del Dipartimento di Politica Economica dipe0005, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    2. repec:eee:iburev:v:26:y:2017:i:3:p:405-416 is not listed on IDEAS
    3. Giorgio Calcagnini & Germana Giombini & Paolo Liberati & Giuseppe Travaglini, 2015. "Technology transfer with search intensity and project advertising," Working Papers 1509, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2015.
    4. Pellegrino, Gabriela & Piva, Mariacristina & Vivarelli, Marco, 2018. "R&D, embodied technological change and employment: Evidence from Spain," MERIT Working Papers 024, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. repec:eee:jbrese:v:91:y:2018:i:c:p:233-247 is not listed on IDEAS
    6. Giovanni Dosi & Mariacristina Piva & Maria Enrica Virgillito & Marco Vivarelli, 2019. "Embodied and disembodied technological change: the sectoral patterns of job-creation and job-destruction," LEM Papers Series 2019/14, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    7. Baumann, Julian & Kritikos, Alexander S., 2016. "The link between R&D, innovation and productivity: Are micro firms different?," Research Policy, Elsevier, vol. 45(6), pages 1263-1274.
    8. Davide Castellani & Mariacristina Piva & Torben Schubert & Marco Vivarelli, 2018. "The source of the US /EU Productivity Gap:Less and less effective R&D," LEM Papers Series 2018/16, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    9. repec:kap:sbusec:v:49:y:2017:i:3:d:10.1007_s11187-017-9844-z is not listed on IDEAS
    10. Stefano Bianchini & Federico Tamagni & Gabriele Pellegrino, 2016. "Innovation strategies and firm growth," Working Papers 2016/10, Institut d'Economia de Barcelona (IEB).
    11. Berulava, George & Gogokhia, Teimuraz, 2016. "Studying Complementarities between Modes of Innovation Strategies in Transition Economies," MPRA Paper 71277, University Library of Munich, Germany.
    12. Song, ChiUng & Oh, Wankeun, 2015. "Determinants of innovation in energy intensive industry and implications for energy policy," Energy Policy, Elsevier, vol. 81(C), pages 122-130.
    13. Gkypali, Areti & Filiou, Despoina & Tsekouras, Kostas, 2017. "R&D collaborations: Is diversity enhancing innovation performance?," Technological Forecasting and Social Change, Elsevier, vol. 118(C), pages 143-152.
    14. Antonio Della Malva & Enrico Santarelli, 2016. "Intellectual property rights, distance to the frontier, and R&D: evidence from microdata," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(1), pages 1-24, April.
    15. Vivarelli, Marco, 2018. "Globalisation, structural change and innovation in emerging economies: The impact on employment and skills," MERIT Working Papers 037, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    16. Rehman, Naqeeb Ur, 2015. "Does Internal and External R&D Affect SMEs Innovation Performance? Micro Level Evidence from India and Pakistan," EconStor Preprints 113229, ZBW - Leibniz Information Centre for Economics.
    17. Castellani, Davide & Piva, Mariacristina & Schubert, Torben & Vivarelli, Marco, 2019. "R&D and productivity in the US and the EU: Sectoral specificities and differences in the crisis," Technological Forecasting and Social Change, Elsevier, vol. 138(C), pages 279-291.
    18. Roberto Ganau & Eleonora Di Maria, 2014. "Determinants of technological innovation in SMEs. Firm-level factors, agglomeration economies and the role of KIBS providers," ERSA conference papers ersa14p820, European Regional Science Association.
    19. Castellani, Davide & Montresor, Sandro & Schubert, Torben & Vezzani, Antonio, 2017. "Multinationality, R&D and productivity: Evidence from the top R&D investors worldwide," International Business Review, Elsevier, vol. 26(3), pages 405-416.
    20. repec:eee:respol:v:47:y:2018:i:9:p:1762-1776 is not listed on IDEAS
    21. Gabriele Pellegrino & Mariacristina Piva & Marco Vivarelli, 2018. "Beyond R&D:The role of embodied technological change in affecting employment," LEM Papers Series 2018/15, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    22. Rehman, Naqeeb Ur, 2016. "Does Internal and External Research and Development Affect Innovation of Small and Medium-Sized Enterprises? Evidence from India and Pakistan," ADBI Working Papers 577, Asian Development Bank Institute.

    More about this item

    Keywords

    R&D; Product innovation; Process innovation; Embodied technical change; Sample selection; SUR; Community innovation survey;

    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

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