Abstract
AbstractPerseverance in R&D effort is the first fundamental step towards any kind of innovation. We investigate the beginning of the innovation story, rather than its end, through duration models. Among the drivers of our unconventional IO approach, we focus on heterogeneity, path dependence and market power, measured as elasticity of firm-specific demand. The Schumpeterian hypothesis emerges at the firm level. Heterogeneity at the industry level reveals Schumpeterian and Arrovian patterns, as well as U-shaped and inverted U-shaped patterns. We suggest considering the entire supply chain from a holistic perspective when evaluating mergers and innovation policies that support small firms by reducing their financial uncertainty and improving their institutional environment.
Funder
Alma Mater Studiorum - Università di Bologna
Publisher
Springer Science and Business Media LLC
Reference170 articles.
1. Aalen, O. O. (1978). Nonparametric Inference for a Family of Counting Process. Annals of Statistics, 6, 701–726.
2. Acs, Z.J., & Audretsch, D.B. (1988). “Innovation in Large and Small Firms: an Empirical Analysis”. In: The American Economic Review 78.4, pp. 678-690.
3. Acs, Z. J., Braunerhjelm, P., Audretsch, D. B., & Carlsson, B. (2008). The Knowledge Spillover Theory of Entrepreneurship. Small Business Economics, 32, 15–30.
4. Aghion, P., Akcigit, U., & Howitt, P. (2015). The Schumpeterian Growth Paradigm. Annual Review of Economics, 7, 557–575.
5. Aghion, P., Bloom, N., Blundell, R., Griffith, R., & Howitt, P. (2005). Competition and Innovation: an Inverted-U Relationship. Quarterly Journal of Economics, 120, 701–728.