Cerulli G., Potì B., Working Paper Cnr-Ceris, N° 01/2013

Table 1. Description of variables employed in the two-step procedure.
Variables in x
R&D intra
R&D extra
Machinery
Technology
Skills
Group
Age
Process
Sector
Size
Geo

Log of the intra-muros R&D expenditure
Log of the extra-muros R&D expenditure
Log the expenditure for innovative machinery
Log of the expenditure for acquiring technology
Log of the number of employees with a degree
Dummy: 1=firm belonging to a group
Dummy: 1=firm set up in 1998-2000
Dummy: 1=firm doing process innovation
2-digit NACE Rev. 1 classification (both manufacturing and services)
Five classes of firm size (10/49; 50/99; 100/249; 250/999; >1000)
Three Italian macro regions (North, Center, South and Islands)

Variables in z
Total innovation spending
Skills
Process
IPRs protection
New strategies
New management
New organization
New marketing
Cooperation

Log of the total expenditure for innovation activities
Log of the number of employees with a degree
Dummy: 1=firm doing process innovation
Dummy: 1=firm improving management in protecting innovation
Dummy: 1=firm improving business strategies for innovation
Dummy: 1=firm improving management strategies for innovation
Dummy: 1=firm improving internal organization for innovation
Dummy: 1=firm improving marketing activities for innovation
Dummy: 1=firm cooperating for innovation

Variables in w
Profit margin (t-1)
Profit margin (t-2)
Innovation Efficiency
Turnover
Concentration
R&D per-capita
Skills
Export intensity
Indebtedness
Labour costs
New organization
New marketing
Cooperation
Age
Patent dummy
Group
Sector
Size
Geo

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Operating Profit Margin (profit/turnover) in 1999
Operating Profit Margin (profit/turnover) in 1998
Firm Innovation Efficiency Index
Firm turnover
2-digit sectoral concentration index
R&D per employee
Number of employees with a degree on total employees
Export on turnover
Stock of short and long term debt on turnover
Labour costs on turnover
Dummy: 1=firm improving internal organization for innovation
Dummy: 1=firm improving marketing activities for innovation
Dummy: 1=firm cooperating for innovation
Dummy: 1=firm set up in 1998-2000
Dummy: 1=firm applying for patents in 1998-2000
Dummy: 1=firm belonging to a group
2-digit NACE Rev. 1 classification (both manufacturing and services)
Five classes of firm size (10/49; 50/99; 100/249; 250/999; >1000)
Three Italian macro regions (North, Center, South and Islands)