R&D, firm size, and product innovation dynamics

Corsino, Marco and Espa, Giuseppe and Micciolo, Rocco (2008) R&D, firm size, and product innovation dynamics. UNSPECIFIED. (Unpublished)

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    This paper addresses a debated issue in the economics innovation literature, namely the existence of increasing return to R&D expenditures and firm size on innovation output. It further explores how structural characteristics of the firm as well as contextual factors affect the dynamics of product innovation over a relatively long period of time. Taking advantage of an original and unique database comprising innovation data recorded on a monthly base we show that: (i) a negative binomial distribution model is able to predict with great accuracy the probability of having a given number of product announcement sent out in a month; (ii) constant returns to size and R&D expenditure may reasonably characterize the innovation production function of sampled firms; (iii) vertically integrated manufacturers as well as producers operating a larger product portfolio exhibit a higher propensity to introduce new products than their specialized competitors.

    Item Type: Departmental Technical Report
    Department or Research center: Computer and management sciences
    Subjects: H Social Sciences > HB Economic Theory
    Report Number: 2008/03
    Repository staff approval on: 01 Apr 2009

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