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How Do Young Innovative Companies Innovate?

  • Pellegrino, Gabriele


    (University of Barcelona)

  • Piva, Mariacristina


    (Università Cattolica del Sacro Cuore)

  • Vivarelli, Marco


    (Università Cattolica del Sacro Cuore)

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 embodied and disembodied components. These input-output relationships are tested on a sample of innovative Italian firms. A sample-selection approach is applied. 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 contrast with the incumbent firms − in-house R&D does not play a significant role.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4301.

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Length: 30 pages
Date of creation: Jul 2009
Date of revision:
Publication status: published in: Structural Change and Economic Dynamics, 2012, 23 (4), 329-340
Handle: RePEc:iza:izadps:dp4301
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