GROWINPRO – Growth, Welfare, Innovation, Productivity

Permanent URI for this collectionhttps://hdl.handle.net/10062/76373

GROWINPRO kodulehekülg.

GROWINPRO aims to provide a detailed analysis of the causes of the anaemic growth performance observed in Europe during the last decades and, in particular, after the Great Recession. On the grounds of such analysis, GROWINPRO will deliver a set of policy solutions aimed at restoring sustained and inclusive economic growth with particular attention both on the demand and on the supply-side.
GROWINPRO brings together researchers from eleven international academic institutions and three national statistical offices. The joint interaction between academic institutions and national statistical offices provides GROWINPRO with a focus on new data sources, methods and statistical indicators to address the challenges posed by the call.
The project has two main ambitions. From a diagnostic perspective, it proposes to link three levels of analysis – macro, meso and micro – empirically dissecting the sources of productivity slowdown and the relations between productivity, demand and growth. From a normative perspective, it aims at providing a novel, integrated set of policies to push Europe towards a balanced, innovation-fuelled and inclusive trajectory of development, also addressing major societal challenges, such as climate change, ageing population, and robotization.

Browse

Browsing GROWINPRO – Growth, Welfare, Innovation, Productivity by Author "Love, James"

Filter results by typing the first few letters
Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Do firms really learn from failure? The dynamics of abandoned innovation
    (2020) Love, James; Roper, Stephen; Vahter, Priit
    Abandoned and failed innovations can be regarded as a part of the natural process of experimentation by firms, which can lead to important lessons being learned. Although the literature suggests some benefit from failure or abandoned innovation activities, prior studies using relatively large firm-level datasets to test the nature of this link are often unable to deal explicitly with the time dimension of learning. We contribute to the literature by showing the dynamic and causal nature of the linkage between abandoned innovation and subsequent innovation outcomes at firms. We demonstrate based on balanced panel data of Spanish manufacturing firms from 2008-2016 that innovation failure not only leads to more successful innovation, but that there is an explicit time dimension to this. We demonstrate that firms which have experienced ‘failure’ (as evidenced by abandoned innovation activities) in the past will have stronger positive effects of recent abandoned innovation activities on innovation output. This is a strong test of the ‘learning-from-failure’ hypothesis. In addition, we find evidence that in addition to enabling cumulative learning processes, abandoning innovation may also act as a dynamic corrective mechanism preventing firms carrying weaker innovation portfolios through from one period to the next.