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Young firms and innovation: a microeconometric analysis

  • Gabriele Pellegrino


    (DISCE, Università Cattolica)

  • Mariacristina Piva


    (DISCE, Università Cattolica)

  • Marco Vivarelli


    (DISCE, Università Cattolica)

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.

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Paper provided by Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) in its series DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali with number dises1068.

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Length: 31 pages
Date of creation: Dec 2010
Date of revision:
Handle: RePEc:ctc:serie2:dises1068
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