The Open UniversitySkip to content

Does market selection reward innovators?

Demirel, Pelin and Mazzucato, Mariana (2010). Does market selection reward innovators? FINNOV.

Full text available as:
PDF (Version of Record) - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Download (460kB)
Google Scholar: Look up in Google Scholar


The paper contributes to an emerging literature that critically questions the degree to which R&D, at the centre of national and transnational innovation policies, results in firm growth. The differences in how innovation affects firm growth is explored for small and large publicly quoted US pharmaceutical firms between 1950 and 2008. We observe that the positive impact of R&D on firm growth is highly conditional upon a combination of firm specific characteristics such as firm size, patenting and persistence in patenting. For large pharma firms, R&D affects firm growth positively with the exception of those that do not patent. On the other hand, for small firms, R&D boosts growth for only a small subset of firms: namely those that patent persistently for a minimum of 5 years. The results also provide some important insights for our understanding of the structural characteristics underlying ‘fat tails’ in firm growth distributions: the tails are fattest when the sample in question includes the persistent innovators.

Item Type: Other
Copyright Holders: 2010 FINNOV
Keywords: innovation; persistence; firm growth; pharmaceutical industry
Academic Unit/School: ?? fass-pped ??
Faculty of Arts and Social Sciences (FASS)
Research Group: Institute for Innovation Generation in the Life Sciences (Innogen)
Item ID: 28550
Depositing User: Alessandro Taffetani
Date Deposited: 10 May 2011 12:44
Last Modified: 16 Jun 2020 01:00
Share this page:

Download history for this item

These details should be considered as only a guide to the number of downloads performed manually. Algorithmic methods have been applied in an attempt to remove automated downloads from the displayed statistics but no guarantee can be made as to the accuracy of the figures.

Actions (login may be required)

Policies | Disclaimer

© The Open University   contact the OU