Succeeding in Innovation: Key Insights on the Role of R&D and Technological Acquisition Drawn from Company Data
Andrea Conte () and
Marco Vivarelli ()
No 7671, IZA Discussion Papers from Institute of Labor Economics (IZA)
This paper discusses the relationship between a company's investment in innovation and its success in introducing new product and/or process innovations. In doing so, this analysis departs from the standard approach which puts forward a homogenous R&D-based knowledge production function by introducing different types of innovation investments (R&D and technology acquisition) for different sets of companies. Using the Community Innovation Survey (CIS) dataset comprising more than 3000 Italian manufacturing companies, the econometric analysis adopts a set of techniques which allows to control for the sample selection, endogeneity and simultaneity problems which arise when dealing with CIS data. The main findings are summarised as follows: (1) beyond the acknowledged effect of R&D in increasing the probability of success of product innovation, a larger-than-expected role is played by technology acquisition in the innovation process; (2) the relative importance of R&D and technology acquisition varies significantly across different types of companies where crucial dimensions of analysis are company size and the technological domain of a sector.
Keywords: community innovation survey; SUR; process innovation; product innovation; R&D; embodied technical change; sample selection (search for similar items in EconPapers)
JEL-codes: O31 (search for similar items in EconPapers)
Pages: 24 pages
New Economics Papers: this item is included in nep-cse, nep-eur, nep-ino, nep-knm, nep-sbm and nep-tid
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Published in: Empirical Economics, 2014, 47(4), 1317-1340
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