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Persistence of innovative activities in times of crisis: the case of the Basque Country

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  • Adelheid Holl
  • Ruth Rama

Abstract

By drawing on a large sample of Spanish manufacturing and service sector firms, the changes in firms’ innovation expenditures that have taken place since the onset of the 2008 economic crisis are analysed, as is the relationship between such changes and the location of the company. Special focus is placed on firms in the Basque Country. Compared to other Spanish regions, the Basque Country differs in terms of its fiscal status, its earlier experience of crises, its innovation performance and its greater focus on innovation-related policies. Our results show that the impact of the crisis on firms’ innovation expenditures in the Basque Country has indeed differed from that in comparable Spanish regions. Even after controlling for sectoral differences and for detailed characteristics at the firm level, firms with R&D employment in the Basque Country showed a significantly lower probability of abandoning innovation activities and even a somewhat higher probability of increasing their innovation efforts. This regional effect is especially significant for small and medium-sized enterprises.

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  • Adelheid Holl & Ruth Rama, 2016. "Persistence of innovative activities in times of crisis: the case of the Basque Country," European Planning Studies, Taylor & Francis Journals, vol. 24(10), pages 1863-1883, October.
    • Handle: RePEc:taf:eurpls:v:24:y:2016:i:10:p:1863-1883
    DOI: 10.1080/09654313.2016.1204426
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    Cited by:

    1. Adelheid Holl & Bettina Peters & Christian Rammer, 2023. "Local knowledge spillovers and innovation persistence of firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 32(6), pages 826-850, August.
    2. Eric Hansen & Erlend Nybakk, 2018. "Response to the global financial crisis: a follow-up study," Journal of Innovation and Entrepreneurship, Springer, vol. 7(1), pages 1-12, December.
    3. Hao-Chen Huang & Hsin-Yin Chang & Ting-Hsiu Liao, 2023. "Analyzing the Impact of the Labor Market on Company Location Selection Using Spatial Econometric Models," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 13(6), pages 1-9.
    4. Antonio García-Sánchez & Ruth Rama, 2024. "New challenges in European innovation partnerships: SOEs, POEs and foreign MNEs during crises," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 14(4), pages 1053-1092, December.
    5. Azagra-Caro, Joaquín M. & Tijssen, Robert J.W. & Tur, Elena M. & Yegros-Yegros, Alfredo, 2019. "University-industry scientific production and the Great Recession," Technological Forecasting and Social Change, Elsevier, vol. 139(C), pages 210-220.
    6. Adelheid Holl & Catalina Martínez & Clara Casado, 2024. "The Changing Geography of Innovation: Comparing Urban, Suburban and Rural Areas," Growth and Change, Wiley Blackwell, vol. 55(4), December.

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