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Innovation and performance of Italian multinational enterprises of the “fourth capitalism”

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  • Schilirò, Daniele

Abstract

The aim of the contribution is to focus on the innovation of Italian medium and medium -large multinationals who represent the "fourth capitalism” and also to evaluate their performance. The enterprises of “fourth capitalism " are the set of medium and medium-large enterprises who seem to be stronger on foreign markets, either through exports or through foreign direct investment. The paper uses the data set from Mediobanca Research Unit to provide a descriptive analysis of the performance of Italian multinational enterprises of the "fourth capitalism", showing the complex approach to the internationalization of these enteprises, where innovation plays a key role. Flexibility and specialization in the production are also important elements that drive the decision to invest and produce abroad for these enterprises. The commercial dimension also plays a key role for the firms of the "fourth capitalism", as it leads to the direct control of foreign markets. The study points out that one of the strategic objectives of Italian multinationals of the “fourth capitalism” is their strong customer focus and organizational effort to provide their services to the customers, which require substantial investment in immaterial assets. Finally, the work highlights some external constraints that penalize the Italian multinational enterprises of the “fourth capitalism”, as the high cost of bureaucracy, excessive and unfair taxation, lack of support to internationalization by public institutions.

Suggested Citation

  • Schilirò, Daniele, 2011. "Innovation and performance of Italian multinational enterprises of the “fourth capitalism”," MPRA Paper 34916, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:34916
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    File URL: https://mpra.ub.uni-muenchen.de/34916/1/MPRA_paper_34916.pdf
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    References listed on IDEAS

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    1. Andrea Colli, 2005. "Il quarto capitalismo," L'industria, Società editrice il Mulino, issue 2, pages 219-236.
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    3. Elhanan Helpman, 2006. "Trade, FDI, and the Organization of Firms," Journal of Economic Literature, American Economic Association, vol. 44(3), pages 589-630, September.
    4. Daniele Schilirò, 2010. "Investing in Knowledge: Knowledge, Human Capital and Institutions for the Long Run Growth," Chapters,in: Governance of Innovation, chapter 3 Edward Elgar Publishing.
    5. Acs, Zoltan J & Audretsch, David B, 1988. "Innovation in Large and Small Firms: An Empirical Analysis," American Economic Review, American Economic Association, vol. 78(4), pages 678-690, September.
    6. Schilirò, Daniele & Musca, Maria, 2010. "Le medie imprese multinazionali del “quarto capitalismo”
      [Medium sized multinationals of "fourth capitalism"]
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    7. Matteo Bugamelli & Luigi Infante, 2003. "Sunk Costs of Exports," Temi di discussione (Economic working papers) 469, Bank of Italy, Economic Research and International Relations Area.
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    More about this item

    Keywords

    Italian multinational firms; fourth capitalism; innovation; internazionalization;

    JEL classification:

    • 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
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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