Economic Crisis and Innovation: Is Destruction Prevailing Over Accumulation?

Innovations and productivity: the shift during the 2008 crisis

“…Empirical evidence confirms the accumulation hypothesis for the current crisis (Kanerva & Hollanders, 2009;Filippetti & Archibugi, 2011;Archibugi et al, 2013). Filippetti and Archibugi (2011) found noticeable differences in innovation investments across European countries.…”

“…Public funds helped to prevent such discontinuations while size was unimportant. Archibugi et al (2013) found that the determinants of innovative behaviour changed during the crisis compared to the pre-crisis period. Firm size and economic performance became less important while the influence of past product innovations and explorative strategies increased.…”

“…Some recent studies revealed significant changes in firm investment behaviour. The most important evidence is the reduction of firms' willingness to invest in innovation (OECD, 2009;Archibugi et al, 2013).…”

“…The first implies that innovations are included in organizational routines and firms use them as a competitive advantage against new entrants. On the contrary the creative destruction concept assumes that crises give opportunities for young innovative firms to appear and displace old and less effective companies (Archibugi et al, 2013).…”

The Impact of the Financial Crisis on Investments in Innovative Firms

“…In the literature two possible effects of the recent crisis on R&D expenditures for innovative firms are suggested. On the one hand firms might increase their R&D spending in the crisis to possibly enter new markets or launch new products (Archibugi et al (2013a(Archibugi et al ( , 2013b. On the other hand the problems accessing external finance limit the resources for financing R&D and this is also observed during the recent financial crisis (Filipetti and Archibugi 2011, Kipar 2011, Paunov 2012.…”