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Barriers to innovation: can firm age help lower them?

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  • Gabriele Pellegrino

    (University of Sussex)

Abstract

This paper examines how firm age can affect a firm’s perception of the obstacles (deterring vs. revealed) that hamper and delay innovation. Using a comprehensive panel of Spanish firms for the period 2004-2011, the empirical analysis conducted shows that distinct types of obstacle are perceived differently by firms of different ages. First, a clear-cut negative relationship is identified between firm age and a firm’s assessment of both the internal and external shortages of financial resources. Second, young firms seem to be less sensitive to the lack of qualified personnel when initiating an innovative project than when they are already engaged in such activities. By contrast, the attempts of mature firms to engage in innovation activity are significantly affected by the lack of qualified personnel. Finally, mature incumbents appear to attach greater importance to obstacles related to market structure and demand than is the case of firms with less experience.

Suggested Citation

  • Gabriele Pellegrino, 2015. "Barriers to innovation: can firm age help lower them?," Working Papers 2015/3, Institut d'Economia de Barcelona (IEB).
  • Handle: RePEc:ieb:wpaper:doc2015-3
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    3. Petersen, Alexander M. & Rotolo, Daniele & Leydesdorff, Loet, 2016. "A triple helix model of medical innovation: Supply, demand, and technological capabilities in terms of Medical Subject Headings," Research Policy, Elsevier, vol. 45(3), pages 666-681.
    4. Hoang, Ngoc & Nahm, Daehoon & Dobbie, Michael, 2021. "Innovation, gender, and labour productivity: Small and medium enterprises in Vietnam," World Development, Elsevier, vol. 146(C).
    5. 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.
    6. Enrico Guzzini & Donato Iacobucci, 2017. "Project failures and innovation performance in university–firm collaborations," The Journal of Technology Transfer, Springer, vol. 42(4), pages 865-883, August.
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    8. Emily Cox, 2015. "Opening the Black Box of Energy Security: A Study of Conceptions of Electricity Security in the UK," SPRU Working Paper Series 2015-37, SPRU - Science Policy Research Unit, University of Sussex Business School.
    9. Mohamed Oudgou, 2021. "Financial and Non-Financial Obstacles to Innovation: Empirical Evidence at the Firm Level in the MENA Region," JOItmC, MDPI, vol. 7(1), pages 1-18, January.
    10. Yuti Ariani Fatimah & Saurabh Arora, 2016. "Nonhumans in the Practice of Development: Material Agency and Friction in a Small-Scale Energy Program in Indonesia," SPRU Working Paper Series 2016-04, SPRU - Science Policy Research Unit, University of Sussex Business School.
    11. Matthew L. Wallace & Ismael Rafols, 2016. "Shaping the Agenda of a Grand Challenge: Institutional Mediation of Priorities in Avian Influenza Research," SPRU Working Paper Series 2016-02, SPRU - Science Policy Research Unit, University of Sussex Business School.
    12. Denila Jinny Arulraj & Thillai Rajan Annamalai, 2020. "Firms’ Financing Choices and Firm Productivity: Evidence from an Emerging Economy," International Journal of Global Business and Competitiveness, Springer, vol. 15(1), pages 35-48, June.

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    More about this item

    Keywords

    Barriers to innovation; firm age; probit panel data model;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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