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Competitive strategies, heterogeneous demand sources and firms' growth trajectories

Serenella Caravella, Francesco Crespi, Dario Guarascio () and Matteo Tubiana

LEM Papers Series from Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy

Abstract: The present paper explores the demand-pull effect of distinct demand sources (i.e. households and retailers, other firms and public sector) on Italian companies' growth patterns. Data relies on the PEC (Indagine sulle Professioni e le Competenze) survey carried out by the Institute for Public Policy Analysis (INAPP), which provides a rich set of information on a representative sample of Italian companies (~32.000) observed during the years 2012, 2014 and 2017. In particular, we investigate if and to what extent firm-level growth profiles are linked to the prevalent source of the demand flows that such firms face. The analysis contextually accounts for the role played by technological and knowledge-related heterogeneities in shaping the growth pattern-demand type relationship. The empirical analysis shows that the demand-pull effect on firms' growth is heterogeneous across different types of demand sources and that the ability to seize the growth-related chances provided by distinct demand conditions is contingent on firms' specific knowledge profiles.

Keywords: firms; growth; demand-pull; innovation. (search for similar items in EconPapers)
Date: 2020-01-09
New Economics Papers: this item is included in nep-knm, nep-sbm and nep-tid
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