The paper focuses on the elements characterizing innovation and its effects in small and medium firms in a Southern Italian area, where the specialization is mainly concentrated in traditional sectors, the size of the firm affects consistently the chance to innovate. The paper aims to understand whether there are cases of small and medium firms able to exploit a competitive advantage using their innovative capability, beside the sectoral and size limits. Researcher have focused on the determinants and on the effects of innovation, which is usually expected to give, at least, a temporary competitive advantage to the firm and a positive impact to sector dynamics (Nelson and Winter 1982; Dosi 1988). The data used was drawn from the OPIS databank, a survey on a sample of about 500 firms of the province of Salerno (Italy). The sample is significant both at territorial and sectoral level, and the questionnaire was structured in order to cover all aspects of the firm. The econometric methodology consist of the estimation of four different models in order to estimate the probability that innovation is successful, controlling for the selection bias deriving form the fact that the output of the innovations was know only for firms that have introduced the innovation. We want to understand if there are some factors influencing the likelihood of innovation, such as entrepreneur education, learning or the networks between firms, but also the role of size and sector of specialization.

The causes and the effects of innovation in small and medium firms

FARACE, Salvatore;MAZZOTTA, Fernanda
2011-01-01

Abstract

The paper focuses on the elements characterizing innovation and its effects in small and medium firms in a Southern Italian area, where the specialization is mainly concentrated in traditional sectors, the size of the firm affects consistently the chance to innovate. The paper aims to understand whether there are cases of small and medium firms able to exploit a competitive advantage using their innovative capability, beside the sectoral and size limits. Researcher have focused on the determinants and on the effects of innovation, which is usually expected to give, at least, a temporary competitive advantage to the firm and a positive impact to sector dynamics (Nelson and Winter 1982; Dosi 1988). The data used was drawn from the OPIS databank, a survey on a sample of about 500 firms of the province of Salerno (Italy). The sample is significant both at territorial and sectoral level, and the questionnaire was structured in order to cover all aspects of the firm. The econometric methodology consist of the estimation of four different models in order to estimate the probability that innovation is successful, controlling for the selection bias deriving form the fact that the output of the innovations was know only for firms that have introduced the innovation. We want to understand if there are some factors influencing the likelihood of innovation, such as entrepreneur education, learning or the networks between firms, but also the role of size and sector of specialization.
2011
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11386/3094067
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