Barriers to innovation and public policy in Catalonia |
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Authors: | Agustí Segarra-Blasco Jose Garcia-Quevedo Mercedes Teruel-Carrizosa |
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Institution: | (1) Research Group of Industry and Territory, Department of Economics, Rovira-Virgili University, Av. Universitat, 1, 43204 Reus, Spain;(2) Economic Institute of Barcelona (IEB), Department of Econometrics, Statistics and Spanish Economy, University of Barcelona, Av/ Diagonal 690, 08034 Barcelona, Spain |
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Abstract: | The present paper analyses the link between firms’ decisions to innovate and the barriers that prevent them from being innovative.
The aim is twofold. First, it analyses three groups of barriers to innovation: the cost of innovation projects, lack of knowledge
and market conditions. Second, it presents the main steps taken by Catalan Government to promote the creation of new firms
and to reduce barriers to innovation. The data set used is based on the 2004 official innovation survey of Catalonia which
was taken from the Spanish CIS4 sample. This sample includes individual information on 2,954 Catalan firms in manufacturing
industries and knowledge-intensive services (KIS). The empirical analysis reveals pronounced differences regarding a firm’s
propensity to innovate and its perception of barriers. Moreover, the results show that cost and knowledge barriers seem to
be the most important and that there are substantial sectoral differences in the way that firms react to barriers. The results
of this paper have important implications for the design of future public policy to promote entrepreneurship and innovation
together.
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Keywords: | Barriers to innovation Industrial policy Innovation system |
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