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Young firms and innovation: a microeconometric analysis

Author

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  • Gabriele Pellegrino

    (DISCE, Università Cattolica)

  • Mariacristina Piva

    (DISCE, Università Cattolica)

  • Marco Vivarelli

    (DISCE, Università Cattolica)

Abstract

This paper discusses the determinants of product innovation in young innovative companies (YICs) by looking at in-house and external R&D and at the acquisition of external technology in its embodied and disembodied components. These ‘innovative’ input-output relationships are tested on a sample of 2,713 innovative Italian firms. A sample-selection approach is applied to study both the determinants of product innovation and the factors affecting the intensity of innovation. Results show that in-house R&D is linked to the propensity to introduce product innovation both in mature firms and YICs; however, innovation intensity in the YICs is mainly dependent on embodied technical change from external sources, while in-house R&D does not play a significant role.

Suggested Citation

  • Gabriele Pellegrino & Mariacristina Piva & Marco Vivarelli, 2010. "Young firms and innovation: a microeconometric analysis," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1068, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    • Handle: RePEc:ctc:serie2:dises1068
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    More about this item

    Keywords

    R&D; Embodied technological change; Product innovation; New firms; Sample selection;
    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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