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On the last decades, European countries have increased their focus on local production systems as a matter of industrial policy measures. Based on the works related to industrial districts of Becatini (1989), Brusco (1990), Ybarra (1991 and 1996) and Dei Ottati (1994), or the later contributions...
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Using novel data on European firms, this paper examines the effect of business group affiliation on innovation. We find … that business groups foster the scale and novelty of corporate innovation. Group affiliation is particularly important in … industries that rely more on external finance and have a higher degree of information asymmetry. We also find that the innovation …
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