Abstract

By means of a new technological indicator, i.e. original data on firms' innovation costs (survey CNR-ISTAT), the neo-Schumpeterian hypothesis on the positive association between innovative intensity, concentration and firm-size has been tested at the aggregate and at the sectoral level for the Italian manufacturing industry. The advantage of the evidence presented here lies mainly in the comprehensive nature of the indicator used. The data on innovation costs include, in addition to R&D, other relevant innovative sources such as those related to production investment, marketing, design and engineering. The empirical results based on this new indicator confirm the existence of a positive association between firm-size and innovative intensity in sectors with high technological opportunities, and also at the aggregate level. A significant concentration of innovative activities in a restricted group of large Italian firms has also been found.

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