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Demand and Innovation in European Industries

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  • Francesco Crespi
  • Mario Pianta

Abstract

After the decade-old debate between demand-pull and technology-push perspectives, demand seems to have fallen out of fashion. In this paper two models are proposed on the determinants of general innovative activities and on the market impact of product innovations. The models combine the supply and demand engines of innovation, and qualify the type of innovative efforts, distinguishing between those oriented towards cost reductions or towards technological competitiveness. The models are tested at the industry level for 22 manufacturing sectors and 17 services sectors in six European countries. The results show that efforts at technological competitiveness, product oriented strategies and the growth of household consumption and export are the key determinants of innovation and performances.

Suggested Citation

  • Francesco Crespi & Mario Pianta, 2007. "Demand and Innovation in European Industries," Economia politica, Società editrice il Mulino, issue 1, pages 79-112.
    • Handle: RePEc:mul:jb33yl:doi:10.1428/24090:y:2007:i:1:p:79-112
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    Cited by:

    1. Caravella, Serenella & Crespi, Francesco & Guarascio, Dario & Tubiana, Matteo, 2020. "Competitive strategies, heterogeneous demand sources and firms’ growth trajectories," GLO Discussion Paper Series 442, Global Labor Organization (GLO).
    2. Cristiano Antonelli & Francesco Crespi & Giuseppe Scellato, 2013. "Internal and external factors in innovation persistence," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 22(3), pages 256-280, April.
    3. Cresti, Lorenzo & Dosi, Giovanni & Fagiolo, Giorgio, 2023. "Technological interdependencies and employment changes in European industries," Structural Change and Economic Dynamics, Elsevier, vol. 64(C), pages 41-57.
    4. Dario Guarascio & Mario Pianta & Matteo Lucchese & Francesco Bogliacino, 2015. "Business cycles, technology and exports," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 32(2), pages 167-200, August.
    5. Krafft Jackie & Quatraro Francesco & Colombelli Alessandra, 2011. "High Growth Firms and Technological Knowledge: Do gazelles follow exploration or exploitation strategies?," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201114, University of Turin.
    6. Cristiano Antonelli & Giuseppe Scellato, 2011. "Out-of-equilibrium profit and innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(5), pages 405-421.
    7. Francesco Crespi & Mario Pianta, 2009. "Diversity in innovation and productivity in Europe," Springer Books, in: Uwe Cantner & Jean-Luc Gaffard & Lionel Nesta (ed.), Schumpeterian Perspectives on Innovation, Competition and Growth, pages 259-275, Springer.
    8. Valeria Cirillo & Mario Pianta & Leopoldo Nascia, 2015. "The Dynamics of Skills: Technology and Business Cycles," LEM Papers Series 2015/30, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    9. Bramucci, Alessandro, 2016. "Offshoring, employment and wages," IPE Working Papers 71/2016, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    10. Alessandro Bramucci, 2015. "Offshoring, Employment and Wages Abstract: This paper reviews the debate on the economic effect of the international fragmentation of production also known as ?offshoring? and provides a preliminary i," Working Papers 1506, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2015.
    11. Cristiano Antonelli & Agnieszka Gehringer, 2015. "The competent demand pull hypothesis: which sectors do play a role?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 32(1), pages 97-134, April.
    12. Valeria Cirillo & Mario Pianta & Leopoldo Nascia, 2018. "Technology and Occupations in Business Cycles," Sustainability, MDPI, vol. 10(2), pages 1-25, February.
    13. Francesco Crespi & Mario Pianta, 2008. "New Processes and New Products in Europe and Italy," Rivista di Politica Economica, SIPI Spa, vol. 98(2), pages 119-146, March-Apr.
    14. Francesco Crespi & Dario Guarascio, 2019. "The demand-pull effect of public procurement on innovation and industrial renewal," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(4), pages 793-815.

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