Abstract
This paper deals with sources of innovation in the Italian manufacturing industry. It uses an extensive database on 8,220 firms which developed technological innovations during the period 1981-85. R&D turns out to be a major source of innovation for a limited number of innovating firms. Non-R&D performers mainly rely upon the acquisition of external technology (equipment and machinery). The paper shows that there is not a statistically significant difference between innovation sources in R&D firms versus non-R&D firms. This suggests that the presence of an R&D laboratory does not make any difference in how the overall technological information is gathered by innovating enterprises. The analysis of the role played by R&D activities in innovation development shows that it accounts only for 17.9 percent of costs, while production investment absorbs 51.5 percent of total financial resources. As a conclusion, R&D activity, being only one phase of the innovation process, cannot be an accurate indicator of a firm's commitment to technological innovation. R&D is often a minor source of innovation and policy measures should not concentrate just on R&D support. Encouraging and financing innovative suppliers and users may be more effective than helping manufacturers of final products.
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