This article addresses an issue that is debated in the economics of innovation literature, namely the existence of increasing returns to R&D expenditures and firm size, in product innovation. It explores further how the firm's structural characteristics and contextual factors affect
the sustained introduction of new components over a relatively long time period. Taking advantage of an original and unique database comprising information on new product announcements by leading semiconductor producers, we show that: (i) decreasing returns to size and R&D expenditures
characterize the innovation production function of the sampled firms; (ii) producers operating a larger product portfolio exhibit a higher propensity to introduce new products than their specialized competitors; (iii) aging has positive bearings on the firm's ability to innovate.
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Document Type: Research Article
Department of Management,University of Bologna, Via Capo di Lucca, 3440126Bologna, Italy
Department of Economics,University of Trento, Trento, Italy
Department of Sociology and Social Research,University of Trento, Trento, Italy
Publication date: July 1, 2011
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