@article{Mazzanti:9554,
      recid = {9554},
      author = {Mazzanti, Massimiliano and Mancinelli, Susanna},
      title = {SME Performance, Innovation and Networking Evidence on  Complementarities for a Local Economic System},
      address = {2007},
      number = {834-2016-55497},
      series = {KTHC Nota di Lavoro 50.2007},
      pages = {27},
      year = {2007},
      abstract = {The paper addresses the relevancy of networking activities  and R&D as main drivers of productivity performance and  ouput innovation, for small and medium enterprises (SME)  playing in a local economic system. Given the intangible  nature of many techno organisational innovation and  networking strategies, original recent survey data for  manufacturing and services are exploited. The aim is to  provide new evidence on the complementarity relationships  concerning different networking activities and R&D in a  local SME oriented system in Northern Italy. We first  introduce a methodological framework to empirically test  complementarity among R&D and networking, in a discrete  setting. Secondly, we consequently present empirical  evidence on productivity drivers and on complementarity  between R&D and networking strategies, with respect to firm  productivity and process/product output innovation. R&D is  a main driver of innovation and productivity, even without  networking. This may signify, in association with the  evidence on complementarity, that firm expenditures on R&D  are a primary driver for performance. The complementarity  with networking is a consequential step. Networking by  itself cannot thus play a role in stimulating productivity  and innovation. It can be a complementary factor in  situations where cooperation and networking are needed to  achieve economies of scale and/or to merge and integrate  diverse skills, technologies and competencies. This is  compatible with a framework where networking is the public  good part of an impure public good wherein R&D plays the  part of the private-led driving force towards structural  break from the business as usual scenario. Managers and  policy makers should be aware that in order to exploit  asset complementarity, possibly transformed into  competitive advantages, both R&D and networking are to be  sustained and favoured. our evidence suggests that R&D may  be a single main driver of performance. Since R&D  expenditures are associated with firm size, a policy  sustain is to be directed towards firm enlargement. After a  certain threshold firms have the force to increase  expenditures. The size effect is nevertheless non  monotonous. Then, but not least important, for the majority  of firms still remaining under a critical size threshold,  policy incentives should be directed to R&D in connection  with networking, through which a virtuous circle may arise.  It is worth noting that it is not networking as such the  main engine. Networking elements are crucially linked to  innovation dynamics; it is nevertheless innovation that  explains and drives networking, and not the often claimed  mere existence of local spillovers or of a civic  associative culture in the territory. Such public good  factors exist but are likely to evolve with and be  sustained by firm innovative dynamics.
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      url = {http://ageconsearch.umn.edu/record/9554},
      doi = {https://doi.org/10.22004/ag.econ.9554},
}