This article shows how in-house R&D may play a role in affecting innovative output beyond its direct impact and its indirect effect through absorptive capacity, generating additional synergies that amplify the impacts of innovative inputs other than R&D itself.

This paper analyses the relationship between size and growth for a group of Italian newborn firms in the instruments industry. The main finding is that Gibrat's Law of Proportionate Effect exhibits a behaviour dependent on the firm's life cycle. In particular, even if in the years immediately...

Using a panel of 211 Italian manufacturing firms for 1995-2001 and the Least Squares Dummy Variable Corrected (LSDVC) estimator recently discussed in the econometric literature, it is shown that demand-pull innovation is particularly significant in liquidity-constrained companies in both the...

Consistently with previous evidence of the microeconomic literature on the subject and applying GMM-SYS on a unique Italian panel dataset, this study finds a significant - although small in size - positive relationship between innovation and employment at the firm's level in the 1990s.