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

Author

Listed:
  • Maria Luisa Mancusi

    () (Economics - Bocconi University [Milan, Italy])

  • Andrea Vezzulli

    () (UNIBO - Alma Mater Studiorum Università di Bologna [Bologna])

  • Franco Malerba

    () (Economics - Bocconi University [Milan, Italy])

  • Claudio Cozza

    () (IPTS - IPTS)

  • Giulio Perani

    () (ISTAT - ISTAT)

Abstract

The main goal of this paper is to assess the impact of product innovation on the economic performance of firms operating in medium and high-tech industries. Using information from a large and unique dataset on Italian firms we estimate, by means of propensity scores 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.

Suggested Citation

  • Maria Luisa Mancusi & Andrea Vezzulli & Franco Malerba & Claudio Cozza & Giulio Perani, 2011. "Innovation, profitability and growth in medium and high-tech manufacturing industries: Evidence from Italy," Post-Print hal-00684299, HAL.
    • Handle: RePEc:hal:journl:hal-00684299
    DOI: 10.1080/00036846.2011.556594
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00684299
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    References listed on IDEAS

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    Cited by:

    1. Huang, Chia-Hui & Hou, Tony Chieh-Tse, 2019. "Innovation, research and development, and firm profitability in Taiwan: Causality and determinants," International Review of Economics & Finance, Elsevier, vol. 59(C), pages 385-394.
    2. Giuseppe Medda & Claudio Piga, 2014. "Technological spillovers and productivity in Italian manufacturing firms," Journal of Productivity Analysis, Springer, vol. 41(3), pages 419-434, June.
    3. Caterina Santi & Pietro Santoleri, 2017. "Exploring the link between innovation and growth in Chilean firms," Small Business Economics, Springer, vol. 49(2), pages 445-467, August.
    4. Kalyvas, Antonios Nikolaos & Mamatzakis, Emmanuel, 2014. "Does business regulation matter for banks in the European Union?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 32(C), pages 278-324.
    5. Dirk Czarnitzki & Julie Delanote, 2015. "R&D policies for young SMEs: input and output effects," Small Business Economics, Springer, vol. 45(3), pages 465-485, October.
    6. D Hugh Whittaker & Benjamin Fath & Antje Fiedler, 2020. "Open to competition? Competitive density and the growth of young New Zealand ventures," Australian Journal of Management, Australian School of Business, vol. 45(2), pages 343-358, May.
    7. Duan, Yunlong & Wang, Wannan & Zhou, Wei, 2020. "The multiple mediation effect of absorptive capacity on the organizational slack and innovation performance of high-tech manufacturing firms: Evidence from Chinese firms," International Journal of Production Economics, Elsevier, vol. 229(C).
    8. Eggert, Andreas & Thiesbrummel, Christoph & Deutscher, Christian, 2014. "Differential effects of product and service innovations on the financial performance of industrial firms," jbm - Journal of Business Market Management, Free University Berlin, Marketing Department, vol. 7(3), pages 380-405.
    9. Luca Ferrucci & Antonio Picciotti, 2013. "Il gruppo Margaritelli: dai sentieri della crescita a quelli della ristrutturazione e del Turnaround," MERCATI E COMPETITIVIT, FrancoAngeli Editore, vol. 2013(4), pages 15-35.

    More about this item

    Keywords

    Social Sciences & Humanities;

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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