TY  - RPRT
        AU  - Piva, Mariacristina
AU  - Vivarelli, Marco
        TI  - Is Demand-Pulled Innovation Equally Important in Different Groups of Firms?
        PY  - 2006/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1982
        UR  - https://www.iza.org/index.php/publications/dp1982
        AB  - Previous empirical literature - mainly cross-sectional - has tested the demand-pull hypothesis and found that overall, evidence does not conflict with the idea that innovation may be driven by output. Using a balanced panel of 216 Italian manufacturing firms over the 1995-2000 period, and checking for fixed effects, time, sectoral and size dummies and for the path-dependent nature of R&D, we also find a (barely significant) role of sales in inducing R&D expenditures. However, at the micro level, the demand-pull effect plays a varying role for the different sub-samples of firms. In particular, exporting firms, those which are liquidity-constrained, those not receiving public subsidies and those not heading a business group, seem to be particularly sensitive to sales in deciding their R&D expenditures. These microeconometric results have been obtained using a Least Squares Dummy Variable Corrected (LSDVC) estimator, a recently-proposed panel data technique particularly suitable for small samples.
        KW  - LSDVC estimator
KW  - R&D expenditures
KW  - demand-pull
KW  - innovative firms
        ER  -