Essays on innovation and business cycles

Gupta, Apoorva (2019) Essays on innovation and business cycles. PhD thesis, University of Nottingham.

[img] PDF (Thesis - as examined) - Repository staff only - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Download (865kB)


This thesis contains three essays on the drivers of innovation and growth during business cycle downturns. It brings evidence from the Great Recession, the strongest downturn since the 1930s, and focuses on the case of Spain, a country that was seriously hit by the recession.

The first essay analyses the performance of Spanish firms during the Great Recession. Evidence from the crisis period shows that having a strategic firm profile, through innovation, internationalisation, and participation in expansive markets matters for growth in bad times. In comparison, evidence from the pre-crisis

period shows that being investment intensive is related to growth in good times.

The second essay investigates if being innovative helps firms to shield themselves from the disruptive effects of a crisis. I find strong evidence that innovative firms

suffer less compared to non-innovative firms during a crisis. The effect operates through innovative firms differentiating their products to adapt to unexpected

rapid decline in economic activity.

The third essay studies if the impact of foreign acquisition on innovation of acquired firms is similar in good and bad times. I find that R&D activities are

restructured away from the acquired firm to firms abroad irrespective of macroeconomic conditions. Acquisition in good times leads to an increase in process innovation, but a lowering of product differentiation. Comparatively, firms acquired in bad times engage less in process innovation since the gains from achieving economies of scale fall, but they also do relatively more product differentiation because the cost of cannibalising sales of existing products is low.

Item Type: Thesis (University of Nottingham only) (PhD)
Supervisors: Kneller, Richard
Licando, Omar
Keywords: Business cycles; Technological innovations; manufacturing industries, Spain
Subjects: H Social sciences > HB Economic theory
Faculties/Schools: UK Campuses > Faculty of Social Sciences, Law and Education > School of Economics
Item ID: 59303
Depositing User: Gupta, Apoorva
Date Deposited: 19 Mar 2020 09:19
Last Modified: 29 Jul 2020 10:28

Actions (Archive Staff Only)

Edit View Edit View