Product Innovation and Corporate Growth: The Case of Integrated Circuits

Marco Corsino

No 115, Quaderni DISA from Department of Computer and Management Sciences, University of Trento, Italy

Abstract: A puzzling evidence stemming from the applied research on growth and innovation is that successful innovations do not appear to have a significant effect on sales growth rates, at odds with the expectation that successful innovators will prosper at the expenses of their less able competitors. The present paper tests a research hypothesis claiming that the level of observation at which applied research is typically conducted hampers the identification of a significant association between innovation and sales growth rates.x10Exploiting a unique and original database comprising detailed information on product innovation of leading semiconductor companies, we find new components commercialized in the nearest past to cause a one percent increase in sales.

Keywords: product innovation; firm growth; semiconductors (search for similar items in EconPapers)
Date: 2006-12
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