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Intangible investments and innovation propensity. Evidence from the Innobarometer 2013

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Abstract

This paper investigates the innovation impact of intangibles by considering the decision of firms to invest in a comprehensive set of them. By using a new survey on a large sample of firms in 28 EU (plus 8 non-EU) countries, we first identify the principal components of the resources firms invest in six kinds of intangibles. Their contribution to the firms’ propensity to introduce new products and/or processes is then estimated with a two-step model, which addresses the endogeneity of the focal regressors through theoretically consistent instruments. A firm’s innovativeness depends on its choice of using internal vs. external resources for its intangible investments more than on their actual amount, and on the kind of assets these investments are directed to. Intangibles need to be managed strategically in order to have an innovation impact and the policy support of this type of investment must take this strategic use into account.

Suggested Citation

  • Sandro Montresor & Antonio Vezzani, 2014. "Intangible investments and innovation propensity. Evidence from the Innobarometer 2013," JRC Working Papers on Corporate R&D and Innovation 2014-03, Joint Research Centre (Seville site).
  • Handle: RePEc:ipt:wpaper:201403
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    File URL: http://iri.jrc.ec.europa.eu/documents/10180/f55492e8-6a95-4b84-8f96-8eb0c8acb406
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    Cited by:

    1. Sandro Montresor & Antonio Vezzani, 2017. "Design, innovation and performance in European firms," JRC Working Papers on Corporate R&D and Innovation 2017-01, Joint Research Centre (Seville site).
    2. A. Arrighetti & F. Landini & A. Lasagni, 2015. "Firms’economic crisis and firm exit: do intangibles matters?," Economics Department Working Papers 2015-EP04, Department of Economics, Parma University (Italy).
    3. Landini, Fabio & Arrighetti, Alessandro & Lasagni, Andrea, 2015. "Economic Crisis and Firm Exit: Do Intangibles Matter?," SEP Working Papers 2015/10, LUISS School of European Political Economy.

    More about this item

    Keywords

    Innovation; Intangibles; R&D;

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • 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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