The impact of Covid-19 and of the earlier crisis on firms’ innovation and growth: a comparative analysis
JRC Working Papers on Territorial Modelling and Analysis No 03/2021
Using the results of the Survey on the Access to Finance of Enterprises (2009 to 2020 editions), this paper aims to assess the effect of COVID-19 pandemic on the probability of firm to innovate and grow and to compare its effect with that of previous downturns. To control for endogeneity bias of innovation decision a Recursive Bivariate Probit Model is used. Results show that the probability of firms to innovate and grow were more affected by the COVID-19 pandemic (year 2020) than by previous economic downturns. The economic performance of innovative firms was also affected by the pandemic, but considerably less than non-innovative ones. Changes in the innovation patterns are also observed. Possible implications for decision-makers are derived.
MARQUES SANTOS Anabela;
HAEGEMAN Karel;
MONCADA PATERNO' CASTELLO Pietro;
2021-06-21
European Commission
JRC125490
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