Abstract
The objective of this study is to amplify the scarce empirical evidence about the effect of technological management on innovation. At the same time, the investigation is intended to examine whether the scale of production by itself stimulates technological activity and/or it acts as a proxy of other determinants of innovation. The estimation of an innovation production function with a panel of Spanish manufacturing firms shows that the planning and monitoring of the innovation process and the hiring of personnel with special skills for technological activities are significant sources of innovation, although with important differences regarding the type of innovation (process versus product). In addition, the evidence suggests that large firms’ advantages for the generation of product innovations are related to a different use and effectiveness of technological management mechanisms.
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