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Innovation, formal vs. informal R&D, and firm size: Some evidence from Italian manufacturing firms

✍ Scribed by Enrico Santarelli; Alessandro Sterlacchini


Publisher
Springer US
Year
1990
Tongue
English
Weight
485 KB
Volume
2
Category
Article
ISSN
0921-898X

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✦ Synopsis


On the basis of data from two recent surveys on innovation diffusion in Italian manufacturing industry, this paper shows that informal R&D is an important part of the total R&D undertaken by small and medium sized firms. Nevertheless, when an output indicator such as the number and the nature of the innovations introduced by firms of different size is used, it emerges that smaU firms have introduced mainly incremental rather than major innovations. The paper therefore suggests that systematic R&D undertaken by large firms within structured laboratories is more effective (in terms of product innovations) than occasional R&D carried out by small firms.