Product innovation and the decision to invest in fixed capital assets: Evidence from an SME survey in six European Union member states

Dimitris Skuras (), Kyriaki Tsegenidi () and Kostas Tsekouras ()

Research Policy, 2008, vol. 37, issue 10, pages 1778-1789

Abstract: This work explores the relationship between product innovation and the decision to invest in fixed capital assets among a sample of SMEs in six European Union countries located in both peripheral and more central areas. We find that the presence of product innovation reduces the probability to invest. A firm's size exerts a direct, inverted U-shape effect on the probability to invest and an indirect effect through the linear effect of size on the probability to innovate. The gap in the probability to invest between innovative and non-innovative firms increases with size.

Keywords: SMEs; Innovation; Investment; Peripheral; areas (search for similar items in EconPapers)
Date: 2008

Downloads: (external link)
http://www.sciencedirect.com/science/article/B6V77 ... 0d9868316273c8d88fcc
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:eee:respol:v:37:y:2008:i:10:p:1778-1789

Access Statistics for this article

Research Policy is edited by M. Bell, B. Martin, W.E. Steinmueller, A. Arora, M. Callon, M. Kenney, S. Kuhlmann, Keun Lee and F. Murray

More articles in Research Policy from Elsevier
Series data maintained by Heidi Boesdal ().