TY  - RPRT
        AU  - García-Quevedo, José
AU  - Pellegrino, Gabriele
AU  - Vivarelli, Marco
        TI  - R&D Drivers in Young Innovative Companies
        PY  - 2011/Nov/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 6136
        UR  - https://www.iza.org/publications/dp6136
        AB  - This paper examines the determinants of young innovative companies' (YICs) R&D activities taking into account the autoregressive nature of innovation. Using a large longitudinal dataset comprising Spanish manufacturing firms over the period 1990-2008, we find that previous R&D experience is a fundamental determinant for mature and young firms, albeit to a smaller extent in the case of the YICs, suggesting that their innovation behaviour is less persistent and more erratic. Moreover, our results suggest that firm and market characteristics play a distinct role in boosting the innovation activity of firms of different age. In particular, while market concentration and the degree of product diversification are found to be important in fostering R&D activities in the sub-sample of mature firms only, YICs' spending on R&D appears to be more sensitive to demand-pull variables, suggesting the presence of credit constraints. These results have been obtained using a recently proposed dynamic type-2 tobit estimator, which accounts for individual effects and efficiently handles the initial conditions problem.
        KW  - dynamic type-2 tobit estimator
KW  - innovation
KW  - R&D
KW  - Young Innovative Companies (YICs)
        ER  -