This paper examines the relationship between R&D investments, innovation and growth in high-technology SMEs during a period of economic downturn. We conduct a quantile regression analysis of longitudinal data collected on a panel of 460 high-technology SMEs over a 6 years period, to test the impact of different activities characterising firms’ innovation strategies (internal R&D investments, external knowledge sourcing through collaborative R&D and the introduction of new products to the market) over the distribution of firms’ growth. We show that the impact of R&D investments is considerably different over the distribution of growth for firms in the sample during a period of economic downturn. More specifically, two distinct profiles emerge. Younger, smaller and innovating companies still experience fast growth rates as a result of the introduction of new products to the market. Conversely, negative returns on R&D investments characterise slow-growing high-technology SMEs. In such cases, a balanced approach between internal R&D investments and collaborative R&D activities positively contributes to growth.
How to invest in R&D during downturns? Exploring the differences between fast-growing and slow-growing high-technology SMEs / Marullo, Cristina; Piccaluga, Andrea; Cesaroni, Fabrizio. - In: PICCOLA IMPRESA. - ISSN 0394-7947. - 1:(2020), pp. 143-160. [10.14596/pisb.330]
How to invest in R&D during downturns? Exploring the differences between fast-growing and slow-growing high-technology SMEs
Cristina Marullo;
2020
Abstract
This paper examines the relationship between R&D investments, innovation and growth in high-technology SMEs during a period of economic downturn. We conduct a quantile regression analysis of longitudinal data collected on a panel of 460 high-technology SMEs over a 6 years period, to test the impact of different activities characterising firms’ innovation strategies (internal R&D investments, external knowledge sourcing through collaborative R&D and the introduction of new products to the market) over the distribution of firms’ growth. We show that the impact of R&D investments is considerably different over the distribution of growth for firms in the sample during a period of economic downturn. More specifically, two distinct profiles emerge. Younger, smaller and innovating companies still experience fast growth rates as a result of the introduction of new products to the market. Conversely, negative returns on R&D investments characterise slow-growing high-technology SMEs. In such cases, a balanced approach between internal R&D investments and collaborative R&D activities positively contributes to growth.File | Dimensione | Formato | |
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https://hdl.handle.net/11583/2971473