Is excessive public procurement a brake on firms' innovative output? An analysis applied to the Italian context

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Date

2023-02

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Inapp

Abstract

This article investigates the relation between public procurement (PP) and firms’ innovation, by analysing information on Italian firms. Taking advantage of the peculiarities of the Italian context, I test whether procurement firms report a higher propensity to innovate, and whether this propensity varies with the level of PP a firm engages in. Even in a country with a high polarisation in firm performance, PP is found to be associated with an increase in the probability of innovating, although this result is limited to micro/small firms, low shares of PP, and firms having product innovation as their target.

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Keywords

Appalti pubblici, Innovazione delle imprese, Piccole e medie imprese

Citation

Augliera M. (2022), Is excessive public procurement a brake on firms' innovative output? An analysis applied to the Italian context, Sinappsi, XII, n.3, pp.66-91 <https://oa.inapp.org/xmlui/handle/20.500.12916/3813>

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https://oa.inapp.gov.it/handle/20.500.12916/3813

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SINAPPSI