How Do Young Innovative Companies Innovate?

30 Pages Posted: 28 Jul 2009

See all articles by Gabriele Pellegrino

Gabriele Pellegrino

Catholic University of the Sacred Heart of Milan

Mariacristina Piva

Universita Cattolica del Sacro Cuore

Marco Vivarelli

Universita Cattolica del Sacro Cuore, Milano; IZA Institute of Labor Economics

Abstract

This paper discusses the determinants of product innovation in young innovative companies (YICs) by looking at in-house and external R&D and at the acquisition of external technology in embodied and disembodied components. These input-output relationships are tested on a sample of innovative Italian firms. A sample-selection approach is applied. Results show that in-house R&D is linked to the propensity to introduce product innovation both in mature firms and YICs; however, innovation intensity in the YICs is mainly dependent on embodied technical change from external sources, while − in contrast with the incumbent firms − in-house R&D does not play a significant role.

Keywords: R&D, product innovation, embodied technical change, CIS 3, sample selection

JEL Classification: O31

Suggested Citation

Pellegrino, Gabriele and Piva, Mariacristina and Vivarelli, Marco, How Do Young Innovative Companies Innovate?. IZA Discussion Paper No. 4301. Available at SSRN: https://ssrn.com/abstract=1439154

Gabriele Pellegrino (Contact Author)

Catholic University of the Sacred Heart of Milan

Largo Gemelli, 1
Via Necchi 9
Milan, MI 20123
Italy

Mariacristina Piva

Universita Cattolica del Sacro Cuore ( email )

Via Emilia Parmense, 84
Piacenza
Italy

Marco Vivarelli

Universita Cattolica del Sacro Cuore, Milano ( email )

Largo Gemelli 1
Milano, 20123
Italy

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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