The paper analyze empirically the probability and the intensity of innovation in small and medium firms. Besides traditional variables such as the firm’s dimension and sector which are known to boost innovation, more emphasis is place on whether the level of firm’s knowledge, captured by human capital and networks, has a positive impact on the probability and intensity of innovation. To investigate the relation between innovation and knowledge a Probit and a Poisson regression model applied to an ad hoc survey OPIS (Permanent Observatory on Enterprises in the province of Salerno). This survey provides information on a representative sample of manufactured firms from a province of Southern Italy. The principal results confirm that on one hand both the entrepreneur and workers’ human capital has a positive impact on innovation and on the other also networks inside the firms, through the decision making participation of the workers shows a positive impact on innovation. The productive chain the firm belongs to is considered the most important external network in terms of knowledge and innovation.

Does "Knowledge" affect innovation in small and medium firms?

FARACE, Salvatore;MAZZOTTA, Fernanda
2012

Abstract

The paper analyze empirically the probability and the intensity of innovation in small and medium firms. Besides traditional variables such as the firm’s dimension and sector which are known to boost innovation, more emphasis is place on whether the level of firm’s knowledge, captured by human capital and networks, has a positive impact on the probability and intensity of innovation. To investigate the relation between innovation and knowledge a Probit and a Poisson regression model applied to an ad hoc survey OPIS (Permanent Observatory on Enterprises in the province of Salerno). This survey provides information on a representative sample of manufactured firms from a province of Southern Italy. The principal results confirm that on one hand both the entrepreneur and workers’ human capital has a positive impact on innovation and on the other also networks inside the firms, through the decision making participation of the workers shows a positive impact on innovation. The productive chain the firm belongs to is considered the most important external network in terms of knowledge and innovation.
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11386/3138323
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