EconPapers    
Economics at your fingertips  
 

Persistence of innovation and patterns of firm growth

Dario Guarascio and Federico Tamagni

Research Policy, 2019, vol. 48, issue 6, 1493-1512

Abstract: In this work we exploit a long-in-time panel of Spanish manufacturing firms observed during the period 1990–2012 to examine the long-run contribution of innovation persistence to sales growth and market share dynamics. We examine two main research questions. First, do persistent innovators grow more than other firms? Second, do persistent innovators show more persistent growth patterns over time compared to other firms? We find negative answers to both questions: firms that persistently innovate over the first decade, do not grow more and do not display more persistent growth dynamics in the succeeding years, regardless of whether innovation persistence is defined in terms of R&D, patenting activity, or product or process innovation. These findings lend support to luck and random theories of firm growth, in turn challenging innovation persistence theories commonly suggesting that persistent innovators enjoy large and sustained comparative advantages.

Keywords: Innovation persistence; Firm growth and market success; Innovation inputs and outputs; Product and process innovation; R&D; Patents (search for similar items in EconPapers)
JEL-codes: C21 D22 O30 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (35)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0048733319300678
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Persistence of innovation and patterns of firm growth (2016) Downloads
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: https://EconPapers.repec.org/RePEc:eee:respol:v:48:y:2019:i:6:p:1493-1512

DOI: 10.1016/j.respol.2019.03.004

Access Statistics for this article

Research Policy is currently 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
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-27
Handle: RePEc:eee:respol:v:48:y:2019:i:6:p:1493-1512