Does nanotechnology research generate an innovation premium over other types of research? Evidence from Ireland

In this paper we empirically analyse the innovation returns to firms which engage in nanotechnology research. Using propensity score matching we match firms which engage in nanotechnology research with statistically similar firms which do not. This allows us to assess whether there is a difference in their respective innovative output. We note that firms which engage in nanotechnology research have higher levels of turnover derived from newly innovative goods and services than firms which do not engage in nanotechnology research after controlling for differences in R&D intensity, openness to external agents and other firm specific characteristics. This suggests that firms which engage in nanotechnology research may gain an innovation premium over similar firms which do not engage in this specific form of research.