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Innovation, industry and firm age: are there new knowledge production functions?

Author

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  • Gabriele Pellegrino

    (EPFL (École Polytechnique Fédérale De Lausanne), CDM ITPP IIPP, ODY 2 01.1 (Odyssea))

  • Mariacristina Piva

    (Università Cattolica del Sacro Cuore)

Abstract

In this paper we investigate how the knowledge production function is at work in different industrial sectors comparing mature and young companies in Italy. We estimate a two-step model using community innovation survey data. We provide evidence that young firms are particularly effective in translating R&D into product innovation in ‘entrepreneurial sectors’ (especially in services where it is likely that capital requirements and experience are negligible), while mature companies turn out to be more effective in translating technological acquisitions (TAs) into process innovation in ‘routinized sectors’ (especially in low-tech manufacturing industries where the main strategy is cost reduction).

Suggested Citation

  • Gabriele Pellegrino & Mariacristina Piva, 2020. "Innovation, industry and firm age: are there new knowledge production functions?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(1), pages 65-95, March.
    • Handle: RePEc:spr:eurasi:v:10:y:2020:i:1:d:10.1007_s40821-019-00129-6
    DOI: 10.1007/s40821-019-00129-6
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    More about this item

    Keywords

    R&D; Technological acquisitions; Innovative outputs; Young innovative firms;
    All these keywords.

    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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