The study investigates the relationship between the innovative performance of Italian non-financial firms, measured by the number of patents issued, and their financial characteristics during the five-year period 2008-12, during which the Italian economy was hit by two recessions.
The study shows that patenting is concentrated in large manufacturing firms and it is higher in medium-high technology industries. Higher cash flow and lower indebtedness have allowed them to fund patent-generating activity using internal resources. Moreover, innovating firms have recorded a stronger growth in sales turnover than non-innovating ones.
