Economic Crisis and Innovation: Is Destruction Prevailing Over Accumulation?

23 Pages Posted: 8 Feb 2012

See all articles by Daniele Archibugi

Daniele Archibugi

Italian National Research Council (CNR); University of London - School of Business, Economics and Informatics

Andrea Filippetti

Italian National Research Council (CNR-ISSIRFA); London School of Economics & Political Science (LSE); University of London - Birkbeck College

Marion Frenz

Birkbeck, University of London

Date Written: February 8, 2012

Abstract

The 2008 economic crisis has severely reduced the short-term willingness of firms to invest in innovation. But this reduction has not occurred uniformly and a few firms even increased their investment in spite of the adverse macroeconomic environment. This paper, based on the latest three waves of the UK Community Innovation Survey, compares drivers of innovation investment before and during the crisis. We find that the crisis led to a concentration of innovative activities within a small group of fast growing new firms and those firms already highly innovative before the crisis. The companies in pursuit of more explorative strategies towards new product and market developments are those to cope better with the crisis.

Keywords: creative destruction, economic crisis, firm-level analysis, Community Innovation Survey

JEL Classification: O12, O30, O52

Suggested Citation

Archibugi, Daniele and Filippetti, Andrea and Frenz, Marion, Economic Crisis and Innovation: Is Destruction Prevailing Over Accumulation? (February 8, 2012). Available at SSRN: https://ssrn.com/abstract=2001486 or http://dx.doi.org/10.2139/ssrn.2001486

Daniele Archibugi

Italian National Research Council (CNR) ( email )

Via Palestro, 32
00185 Rome
Italy

University of London - School of Business, Economics and Informatics ( email )

Malet Street
Bloomsbury
London, WC1E 7HX
United Kingdom
+44 (0) 207 631 6741 (Phone)
+44 (0) 207 631 6769 (Fax)

HOME PAGE: http://www.bbk.ac.uk/management/our-staff/academics/archibugi

Andrea Filippetti (Contact Author)

Italian National Research Council (CNR-ISSIRFA) ( email )

Via dei Taurini, 19
00185 Rome
Italy

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

University of London - Birkbeck College ( email )

Malet Street
London, WC1E 7HX
United Kingdom

Marion Frenz

Birkbeck, University of London ( email )

Malet Street
London, WC1E 7HX
United Kingdom

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