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Internal and external factors in innovation persistence

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This paper contributes the analysis of the persistence of innovation activities, as measured by total factor productivity (TFP) and explores its internal and external determinants stressing its path dependent characteristics. The external conditions, namely the quality of local knowledge pools and the strength of the Schumpeterian rivalry, together with the internal conditions, that is the actual levels of dynamic capabilities, as proxied by the levels of wages and the size of firms, exert a specific and localized effect upon the persistent introduction of innovations. A Multiple Transition Probability Matrixes (MTPMs) approach has been implemented to grasp the contingent effects of external effects on the long-term innovation persistence. The empirical analysis of the dynamics of firm level TFP for a sample of about 7000 Italian manufacturing companies observed during the years1996-2005 is based on both the comparison of different transition probability matrixes and on dynamic discrete choice panel data models. The evidence provided by the test of MTPMs in sub-periods suggests that innovation persistence is path dependent, as opposed to past dependent.

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  • Antonelli, Cristiano & Crespi, Francesco & Scellato, Giuseppe, 2012. "Internal and external factors in innovation persistence," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201211, University of Turin.
  • Handle: RePEc:uto:labeco:201211
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    Cited by:

    1. Antonelli, Cristiano & Gehringer, Agnieszka, 2015. "Knowledge externalities and demand pull: The European evidence," Economic Systems, Elsevier, vol. 39(4), pages 608-631.
    2. Antonelli, Cristiano & David, Paul, 2015. "The Useful Application of Knowledge: An Introduction," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201510, University of Turin.
    3. Tavassoli, Sam & Karlsson, Charlie, 2015. "Persistence of various types of innovation analyzed and explained," Research Policy, Elsevier, vol. 44(10), pages 1887-1901.
    4. Antonelli,Cristiano & Colombelli, Alessandra, 2013. "Knowledge cumulability and complementarity in the knowledge generation function," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201303, University of Turin.
    5. Rosa J. & Mohnen P., 2013. "Doing R&D in a closed or open mode : dynamics and impacts on productivity," MERIT Working Papers 060, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Córcoles, David & Triguero, Ángela & Cuerva, María Carmen, 2016. "Comparing persistence of product and process innovation: A discrete-time duration analysis of innovation spells," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 10, pages 1-35.
    7. Antonelli, Cristiano, 2013. "The Economic Complexity of Innovation as a Creative Response," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201326, University of Turin.
    8. Rammer, Christian & Schubert, Torben, 2016. "Concentration on the few? R&D and innovation in German firms 2001 to 2013," ZEW Discussion Papers 16-005, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    9. Christopher F Baum & Hans Lööf & Pardis Nabavi, 2015. "Innovation Strategies, External Knowledge and Productivity Growth," Boston College Working Papers in Economics 885, Boston College Department of Economics, revised 06 Dec 2017.
    10. repec:eee:respol:v:47:y:2018:i:2:p:379-389 is not listed on IDEAS
    11. repec:eee:iburev:v:26:y:2017:i:6:p:1114-1123 is not listed on IDEAS
    12. Colombelli, Alessandra & Krafft, Jackie & Quatraro, Francesco, 2014. "The emergence of new technology-based sectors in European regions: A proximity-based analysis of nanotechnology," Research Policy, Elsevier, vol. 43(10), pages 1681-1696.
    13. Cristiano Antonelli & Francesco Crespi & Giuseppe Scellato, 2015. "Productivity growth persistence: firm strategies, size and system properties," Small Business Economics, Springer, vol. 45(1), pages 129-147, June.
    14. Angela Triguero & David Córcoles & Maria Cuerva, 2014. "Persistence of innovation and firm’s growth: evidence from a panel of SME and large Spanish manufacturing firms," Small Business Economics, Springer, vol. 43(4), pages 787-804, December.
    15. Gigante, Anna Azzurra, 2013. "Institutional Cognitive Economics: some recent developments," MPRA Paper 48278, University Library of Munich, Germany.
    16. Antonelli Cristiano & Crespi, Francesco & Scellato, Giuseppe, 2013. "Path Dependent Patterns of Persistence in Productivity Growth," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201310, University of Turin.
    17. Dario Guarascio & Federico Tamagni, 2016. "Persistence of innovation and patterns of firm growth," LEM Papers Series 2016/31, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    18. Fontana, Roberto & Vezzulli, Andrea, 2016. "Technological leadership and persistence in product innovation in the Local Area Network industry 1990–1999," Research Policy, Elsevier, vol. 45(8), pages 1604-1619.

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