Barriers to Innovation: Can Firm Age Help Lower Them?

43 Pages Posted: 8 Mar 2016  

Gabriele Pellegrino

University of Barcelona

Multiple version iconThere are 2 versions of this paper

Date Written: November 22, 2015

Abstract

This paper examines how firm age can affect a firm’s perception of the obstacles (deterring vs. revealed) that hamper and delay innovation. Using a comprehensive panel of Spanish firms for the period 2004-2011, the empirical analysis conducted shows that distinct types of obstacle are perceived differently by firms of different ages. First, a clear-cut negative relationship is identified between firm age and a firm’s assessment of both the internal and external shortages of financial resources. Second, young firms seem to be less sensitive to the lack of qualified personnel when initiating an innovative project than when they are already engaged in such activities. By contrast, the attempts of mature firms to engage in innovation activity are significantly affected by the lack of qualified personnel. Finally, mature incumbents appear to attach greater importance to obstacles related to market structure and demand than is the case of firms with less experience.

Keywords: Barriers to innovation, firm age, probit panel data model

JEL Classification: C23, O31, O32, O33

Suggested Citation

Pellegrino, Gabriele, Barriers to Innovation: Can Firm Age Help Lower Them? (November 22, 2015). SWPS 2015-33. Available at SSRN: https://ssrn.com/abstract=2744685 or http://dx.doi.org/10.2139/ssrn.2744685

Gabriele Pellegrino (Contact Author)

University of Barcelona ( email )

Gran Via de les Corts Catalanes, 585
Barcelona, 08007
Spain

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