Concentration of innovation investments along the business cycle

This paper addresses the question of the impact of demand reductions on frms’ concentration of innovation investments. Evidence is drawn from the PITEC database, which includes a stable panel of frms yearly surveyed in the 2006–2013 period. Controlling for selection, frms in the sample are found, fo...

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Detalhes bibliográficos
Autor: Mendi, P. (Pedro)|||/items/83ca8185-defa-401e-a066-55b7d4bcdf1c
Formato: artículo
Fecha de publicación:2023
País:España
Recursos:Universidad de Navarra
Repositorio:Dadun. Depósito Académico Digital de la Universidad de Navarra
Idioma:inglés
OAI Identifier:oai:dadun.unav.edu:10171/68381
Acesso em linha:https://hdl.handle.net/10171/68381
Access Level:acceso abierto
Palavra-chave:Innovation
Concentration
Firm size
Exports
Great Recession
Spain
Descrição
Resumo:This paper addresses the question of the impact of demand reductions on frms’ concentration of innovation investments. Evidence is drawn from the PITEC database, which includes a stable panel of frms yearly surveyed in the 2006–2013 period. Controlling for selection, frms in the sample are found, following a demand decrease, to reduce the number of innovation investment categories. The efect of demand decreases is stronger for small frms. No evidence is found of exporting being a moderator of the relationship between demand fuctuations and the concentration of innovation investments. These fndings suggest that downturns reduce the diversity in the innovation of frms, which could potentially have long-lasting efects on their innovation activities, and, ultimately, on their competitiveness.