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The Journal of Technology Transfer

, Volume 45, Issue 1, pp 339–369 | Cite as

External R&D, product and process innovation in European manufacturing companies

  • Giuseppe MeddaEmail author
Article

Abstract

We assess the relationship between firms’ Research and Development expenditures over sales and innovation output, measured by three dummies indicating whether firms have introduced any product innovation, process innovation or both types of innovations together. In particular, we estimate the impact that external sources of R&D may have on different kind of innovations, differentiating between R&D supplied by universities and other research centers, on one side, and other companies, on the other. We base our empirical analysis on a large and representative sample of European manufacturing companies from France, Germany, Italy, Spain, and the UK. Treating R&D intensity as an endogenous variable, we find that (1) R&D intensity has a positive and significant effect on the probability to introduce product innovations, process innovations, or both innovations together; (2) the share of R&D acquired from external sources has a positive impact on process innovation, and on the probability to introduce product and process innovation together, but not on product innovation alone; (3) the share of external R&D supplied by universities has a positive and significant effect on product innovation, but no correlation has been found with process innovation, while R&D acquired from other companies have a positive impact on process innovation but not on product innovation.

Keywords

External R&D Product innovation Process innovation IV model 

JEL Classification

O31 O32 L60 C36 

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Department of Economics (DiSEA)University of SassariSassariItaly

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