Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/202295
Authors: 
Bratti, Massimiliano
Felice, Giulia
Year of Publication: 
2018
Series/Report no.: 
JRC Working Papers in Economics and Finance No. 2018/3
Abstract: 
This paper uses European firm-level survey data to provide some robust empirical evidence that suppliers engaged in production to order (PTO) for foreign firms are more likely to introduce product innovations than those engaged in PTO for domestic firms, even when differences in size, R&D and productivity are controlled for. We propose a demand-driven theoretical explanation based on the interactions between an upstream producer of a specialized input and a downstream producer in a framework of incomplete contracts, agency frictions, and imperfect information.
Subjects: 
buyer
supplier
product innovation
production to order
foreign market
JEL: 
D21
D22
F21
L23
O31
Persistent Identifier of the first edition: 
ISBN: 
978-92-79-81723-6
Document Type: 
Working Paper

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