Innovation drivers of external competitiveness in the great recession

Abstract

This paper explores the main drivers of firms’ external competitiveness in times of crisis. We focus on the aftermath of the Great Recession (2008–2015) and present evidence based on a comprehensive survey of Italian companies (the MET dataset). Overall, our results highlight not only the strict correlation between internationalization and innovative activities but also a positive change of attitude of Italian firms towards these strategies. We show that, while structural factors play a key role for external competitiveness, other critical aspects trigger superior performances, especially strategic profiles, technological capabilities, and proactive behaviors such as innovativeness and R&D investment. Importantly, we document disproportionate effects of innovation for smaller and less productive companies. This points at dynamic strategies as a potential tool to fill the gap between larger/more productive companies and the set of less structured firms, a segment representing an ideal target for policy measures.

Examining the determinants of small firms' performance in India

“…Manufacturing SMEs with a high R&D investment not only manage to improve their processes and products but also develop spill-over abilities ranging from greater absorptive capacity to stronger capability in responding to the opportunities and threats they may face. As per the resource-based theory (RBT), a firm's competitiveness is largely determined by the presence of capabilities such as the value-creating aspect of its R&D activity (Brancati et al , 2021; Tidd and Izumimoto, 2002). Thus, it is posited that the greater the investment in R&D activities by small-scale as well as medium-scale firms, superior will be their performance.…”

Innovation in times of crisis: A systematic literature review

“…Financial innovation is associated with higher bank growth Schumpeterian view of innovation-based competition [Brancati et al, 2021] Technology and product quality-related factors are far more important than cost-related aspects in explaining export performance Schumpeterian view of recessions [Busom, Velez Ospina, 2021] During recessions, the opportunity cost of profitability-improving R&D investments drops, relative to regular physical capital investments, offering incentives to ramp up these activities Innovation-fragility view [Beck et al, 2016] Financial innovation is linked to a higher level of risk-taking on the part of banks. It considerably amplifies the volatility of banks' benefits, their fragility and their falls during a banking crisis Microeconomic theory of innovation and institution based view Gang, Choi, 2019] The microeconomic theory of innovation from the neo-Schumpeterian literature, highlights the role played by institutions on economic activities…”

“…Вып. 3 R. Smara of organization and combination of inputs in the production process [Berchicci, Tucci, Zazzara, 2014]); and 3) organizational innovations (provision of a new or improved organization of resources within the company [Brancati et al, 2021]).…”

The Influence of Value-Chain Governance on Innovation Performance: a Study of Italian Suppliers

“…First of all, we exploit the share of sales from product innovations to analyse the performance associated to the innovation process (Ln Innov Rev in our notation). Moreover, we further look at export activities, that are typically significantly affected by innovations (Becker & Egger, 2013b;Caldera, 2010;Dosi et al, 2015;Brancati et al, 2021; among many others). We employ both the extensive (a dummy for exporting firms, Exporter) and intensive margins of export (log of exported value, Ln Exports) as alternative dependent variables to explore this dimension.…”