Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/249190
Authors: 
Santos, Anabela Marques
Haegeman, Karel
Moncada PaternĂ² Castello, Pietro
Year of Publication: 
2021
Series/Report no.: 
JRC Working Papers on Territorial Modelling and Analysis No. 03/2021
Publisher: 
European Commission, Joint Research Centre (JRC), Seville
Abstract: 
Using the results of the Survey on the Access to Finance of Enterprises (2009 to 2020 editions), this paper aims to assess the effect of Covid-19 pandemic on the probabilities of firm to innovate and grow and to compare their likelihood with that of the previous downturn. To control for a possible endogeneity bias as part of innovation decisions a Recursive Bivariate Probit Model is used. Results show that the probabilities of firms to innovate and grow are lower in 2020 (Covid-19 crisis) than in 2009 (financial crisis). The economic performance of innovative firms was also affected by the pandemic, but considerably less than the performance of non-innovative ones. Changes in the innovation patterns are also observed. Possible implications for decision-makers are derived.
Subjects: 
Innovation
Growth
Covid-19
Europe
JEL: 
O31
O12
O52
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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