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Innovation, profitability and growth in medium and high-tech manufacturing industries: evidence from Italy

  • Claudio Cozza
  • Franco Malerba
  • Maria Luisa Mancusi
  • Giulio Perani
  • Andrea Vezzulli

The main goal of this article is to assess the impact of product innovation on the economic performance of firms operating in Medium and High-Tech (M&HT) industries. Using information from a large and unique dataset on Italian firms we estimate, by means of Propensity Score (PS) matching methods, a positive and significant ‘innovation premium’ both in terms of profitability and growth (in the short-run) for those firms who introduced new innovative products. We also find that this innovation premium is particularly large for small firms and even more so when considering new established firms.

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File URL: http://hdl.handle.net/10.1080/00036846.2011.556594
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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 44 (2012)
Issue (Month): 15 (May)
Pages: 1963-1976

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Handle: RePEc:taf:applec:44:y:2012:i:15:p:1963-1976
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