Abstract
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 small 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.
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Santarelli, E., Sterlacchini, A. Innovation, formal vs. informal R&D, and firm size: Some evidence from Italian manufacturing firms. Small Bus Econ 2, 223–228 (1990). https://doi.org/10.1007/BF00389530
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DOI: https://doi.org/10.1007/BF00389530