Inputs and Outputs of Innovative Activities in Italian Manufacturing
By using new and comprehensive indicators, this paper analyses across Italian manufacturing industries the relationship between innovation inputs and outputs. The regression analysis shows that the sales due to process innovations are significantly associated with the purchases of innovative capital goods while the sales of improved products and products that are new to the firm are particularly affected by expenditure on product R&D. The expenditures for design, engineering and pre-production developments are closely associated with the sales ascribed to products new to the Italian market and entirely new. However, the results of a canonical correlation analysis suggest that, to raise the sales of the most innovative products, the joint employment of innovation inputs is necessary.
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