Firm size and innovation policy

Firm size and innovation in European manufacturing

The paper investigates the differences between small, medium-sized and large firms regarding their performance in the introduction of new products and processes. After a review of the relevant literature, two models are proposed and tested in search for different business strategies and innovation inputs connected to product and process innovations. The empirical analysis uses innovation survey...

Firm Size Diversity and Regional Innovation ∗

Why are some regions more innovative than others? We examine within– and across–region variation in the coexistence of large and small labs. Large labs may spawn spin-outs caused by innovations deemed unrelated to the firm’s overall business. Small labs generate demand for specialized services that lower entry costs for others. We develop a theoretical framework to study the interplay of these ...

Xx Congreso Nacional De Acede Septiembre 2010, Granada Firm Size and Innovation Policy

Innovation and Inter-firm Linkages: Implications for Policy

This article discusses the implications for competition, innovation and learning of different forms of inter-firm linkage, ways to govern them, different "generic systems" of innovation, and government policy. It employs a transformed theory of transactions that can deal with innovation and learning, and brings in trust next to opportunism. For learning and innovation it takes the resource/comp...

Reconciling the Firm Size and Innovation Puzzle by

Since Schumpeter, there has been a long-standing debate regarding the optimal firm size for innovation. Empirical results have settled into a puzzle: R&D spending increasing with scale while R&D productivity decreases with scale. Thus large firms appear irrational. We propose the puzzle stems from the fact that product and patent counts undercount large firm innovation. To test that proposition...