We study the impact of individual risk attitude on the relationship between product innovation and firm performance, in a model of firm growth with endogenous product selection. We exploit a unique dataset collecting firm-level data on new product introductions and individual attitudes towards risk elicited from a lottery. Empirical evidence shows that the introduction of a new product affects firm growth significantly only in the sample of risk-loving individuals, thus supporting the hypothesis of a negative correlation between the firm growth and the risk aversion of the decision maker.
Risk Attitude, Product Innovation and Firm Growth. Evidence from Italian Manufacturing Firms / Cucculelli, Marco; Ermini, Barbara. - In: ECONOMICS LETTERS. - ISSN 0165-1765. - STAMPA. - 118:2(2013), pp. 275-279. [10.1016/j.econlet.2012.11.006]
Risk Attitude, Product Innovation and Firm Growth. Evidence from Italian Manufacturing Firms
CUCCULELLI, MARCO;ERMINI, Barbara
2013-01-01
Abstract
We study the impact of individual risk attitude on the relationship between product innovation and firm performance, in a model of firm growth with endogenous product selection. We exploit a unique dataset collecting firm-level data on new product introductions and individual attitudes towards risk elicited from a lottery. Empirical evidence shows that the introduction of a new product affects firm growth significantly only in the sample of risk-loving individuals, thus supporting the hypothesis of a negative correlation between the firm growth and the risk aversion of the decision maker.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
