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Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/116580
The determinants of YICs’ R&D activity
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Abstract
This paper examines the determinants of young innovative companies’ (YICs) R&D activities taking into account the autoregressive nature of innovation. Using a large longitudinal dataset comprising Spanish manufacturing firms over the period 1990-2008, we find that previous R&D experience is a fundamental determinant for mature and young firms, albeit to a smaller extent in the case of the YICs, suggesting that their innovation behaviour is less persistent and more erratic. Moreover, our results suggest that firm and market characteristics play a distinct role in boosting the innovation activity of firms of different age. In particular, while market concentration and the degree of product diversification are found to be important in boosting R&D activities in the sub-sample of mature firms only, YICs’ spending on R&D appears to be more sensitive to demand-pull variables, suggesting the presence of credit constraints. These results have been obtained using a recently proposed dynamic type-2 tobit estimator, which accounts for individual effects and efficiently handles the initial conditions problem.
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GARCIA-QUEVEDO, Jose, PELLEGRINO, Gabriele and VIVARELLI, Marco. The determinants of YICs’ R&D activity. IEB Working Paper 2011/31. [consulted: 6 of June of 2026]. Available at: https://hdl.handle.net/2445/116580