RELATORE: Prof. Sandro Montresor - Università degli Studi di Enna “Kore”

ABSTRACT

This paper investigates the extent to which innovation persistence unfolds in "times of crisis". By combining the extant literature with recent research on innovation along the downturn of business cycles, we expect that persistence hardly emerges in these times and that it is affected by the public support received by firms and by their business strategies. Drawing on the last three waves (2005-2013) of the MET survey on Italian firms, we find that innovation persistence is actually limited to process innovations, and to radical ones in particular. The detected persistence is reinforced by the public support firms receive for their ICT, while it is attenuated by that directed to their employment issues. Persistence is also attenuated in firms that face market competition by intensifying their research and innovation efforts. Results suggest that a negative phase of the business cycle makes firm innovation relatively discontinuous, and that its persistence could trade-ffo with specific kinds of support and business strategies in the same situation.