Table 3 Results for innovative SMEs...

Table 3

Results for innovative SMEs profitability

					High-tech		Robustness check
	Random effect		Lewbel IV		Random effect		Random effect
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
Inner area	−0.0106	−0.0355**	−0.0123	−0.0334**	−0.0146	−0.0300*	−0.0363**	−0.0372**
Inner area	0.009	0.015	0.009	0.015	0.011	0.016	0.015	0.015
North West	0.0447**	0.0377**	0.0441**	0.0379**	0.0363*	0.0483*	0.0378**	0.0329*
North West	0.018	0.019	0.02	0.019	0.02	0.029	0.019	0.019
North East	0.0143	0.0063	0.0139	0.003	0.0105	0.0067	0.0067	0.0062
North East	0.019	0.02	0.023	0.023	0.023	0.021	0.020	0.020
Centre	0.0441***	0.0381**	0.0437**	0.0379**	0.0427**	0.0322*	0.0378**	0.0393**
Centre	0.016	0.017	0.018	0.018	0.018	0.019	0.017	0.017
Inner area*Northwest		0.0570*		0.0519**		0.0404	0.0578*	0.0578*
Inner area*Northwest		0.034		0.025		0.043	0.034	0.034
Inner area*Northeast		0.0532**		0.0560**		0.0464*	0.0521**	0.0511**
Inner area*Northeast		0.023		0.023		0.028	0.023	0.023
Inner area*Centre		0.0119		0.0094		−0.0025	0.0117	0.0105
Inner area*Centre		0.024		0.017		0.030	0.024	0.024
Roa_1	0.5475***	0.5390***	0.5475***	0.5459***	0.5205***	0.5148***	0.5389***	0.5391***
Roa_1	0.014	0.014	0.022	0.023	0.016	0.016	0.014	0.014
Roa_2	0.1323***	0.1281***	0.1323***	0.1321***	0.1258***	0.1223***	0.1281***	0.1280***
Roa_2	0.014	0.014	0.020	0.020	0.015	0.015	0.014	0.014
Age	0.0009***	0.0010***	0.0009***	0.0009***	0.0010***	0.0008**	0.0010***	0.0010***
Age	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Leverage	−0.0239**	−0.0208**	−0.0239**	−0.0241**	−0.0275**	−0.0246**	−0.0208**	−0.0208**
Leverage	0.010	0.010	0.012	0.012	0.011	0.011	0.010	0.010
Working capital	0.0693***	0.0749***	0.0693***	0.0707***	0.0717***	0.0765***	0.0751***	0.0749***
Working capital	0.010	0.010	0.010	0.010	0.012	0.012	0.010	0.010
Firm growth	0.0945***	0.0953***	0.0945***	0.0944***	0.1086***	0.1083***	0.0953***	0.0954***
Firm growth	0.006	0.006	0.009	0.009	0.007	0.007	0.006	0.006
Population density	−0.0037**	−0.0039**	−0.0037**	−0.0039**	−0.0027	−0.0028	−0.0039**	−0.0036*
Population density	0.002	0.002	0.002	0.002	0.002	0.002	0.002	0.002
Branch density	0.0514	−0.0277	0.0527	−0.0311	0.0735	0.0495	−0.0253	−0.0124
Branch density	0.16	0.162	0.122	0.126	0.193	0.203	0.163	0.163
Gini index	−0.1296	−0.101	−0.1314	−0.124	−0.1148	−0.0978	−0.0955	−0.1031
Gini index	0.086	0.087	0.082	0.083	0.098	0.103	0.088	0.089
Senior index	0.0051	0.006	0.0052	0.0054	0.0041	0.0034	0.0054	0.0059
Senior index	0.008	0.008	0.007	0.007	0.009	0.010	0.008	0.008
Seismic risk	0.0228**	0.0260***	0.0231**	0.0243***	0.0278**	0.0215*	0.0256**	0.0233**
Seismic risk	0.010	0.010	0.009	0.009	0.012	0.011	0.010	0.010
Rural areas							0.0048	0.0031
Rural areas							0.010	0.011
Altitude								1.08E−05
Altitude								0.000
Coastal municipality								−0.0143
Coastal municipality								0.012
Intercept	−0.0281	−0.0272	−0.0269	−0.0211	−0.0131	−0.0089	−0.0287	−0.023
Intercept	0.040	0.040	0.037	0.037	0.046	0.048	0.041	0.041
Observations	4266	4266	4266	4,266	3,446	3,446	4,266	4,266
Model test	3,964.353	4024.145	116.3	97.95	2847.34	2849.52	4023.596	4025.197
Model test p-value	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000
R-squared	0.486	0.490	0.455	0.456	0.459	0.461	0.490	0.490
Heteroskedasticity test	615.35	598.34
Heterosked. test p-value	0.000	0.000
Number of groups/clusters	863	863	863	863	694	694	863	863
Endogeneity test			1.219	1.377
Endogeneity test p-value			0.269	0.241
Hansen J test			65.98	74.14
Hansen J test p-value			0.646	0.474

					High-tech		Robustness check
	Random effect		Lewbel IV		Random effect		Random effect
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
Inner area	−0.0106	−0.0355**	−0.0123	−0.0334**	−0.0146	−0.0300*	−0.0363**	−0.0372**
Inner area	0.009	0.015	0.009	0.015	0.011	0.016	0.015	0.015
North West	0.0447**	0.0377**	0.0441**	0.0379**	0.0363*	0.0483*	0.0378**	0.0329*
North West	0.018	0.019	0.02	0.019	0.02	0.029	0.019	0.019
North East	0.0143	0.0063	0.0139	0.003	0.0105	0.0067	0.0067	0.0062
North East	0.019	0.02	0.023	0.023	0.023	0.021	0.020	0.020
Centre	0.0441***	0.0381**	0.0437**	0.0379**	0.0427**	0.0322*	0.0378**	0.0393**
Centre	0.016	0.017	0.018	0.018	0.018	0.019	0.017	0.017
Inner area*Northwest		0.0570*		0.0519**		0.0404	0.0578*	0.0578*
Inner area*Northwest		0.034		0.025		0.043	0.034	0.034
Inner area*Northeast		0.0532**		0.0560**		0.0464*	0.0521**	0.0511**
Inner area*Northeast		0.023		0.023		0.028	0.023	0.023
Inner area*Centre		0.0119		0.0094		−0.0025	0.0117	0.0105
Inner area*Centre		0.024		0.017		0.030	0.024	0.024
Roa_1	0.5475***	0.5390***	0.5475***	0.5459***	0.5205***	0.5148***	0.5389***	0.5391***
Roa_1	0.014	0.014	0.022	0.023	0.016	0.016	0.014	0.014
Roa_2	0.1323***	0.1281***	0.1323***	0.1321***	0.1258***	0.1223***	0.1281***	0.1280***
Roa_2	0.014	0.014	0.020	0.020	0.015	0.015	0.014	0.014
Age	0.0009***	0.0010***	0.0009***	0.0009***	0.0010***	0.0008**	0.0010***	0.0010***
Age	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Leverage	−0.0239**	−0.0208**	−0.0239**	−0.0241**	−0.0275**	−0.0246**	−0.0208**	−0.0208**
Leverage	0.010	0.010	0.012	0.012	0.011	0.011	0.010	0.010
Working capital	0.0693***	0.0749***	0.0693***	0.0707***	0.0717***	0.0765***	0.0751***	0.0749***
Working capital	0.010	0.010	0.010	0.010	0.012	0.012	0.010	0.010
Firm growth	0.0945***	0.0953***	0.0945***	0.0944***	0.1086***	0.1083***	0.0953***	0.0954***
Firm growth	0.006	0.006	0.009	0.009	0.007	0.007	0.006	0.006
Population density	−0.0037**	−0.0039**	−0.0037**	−0.0039**	−0.0027	−0.0028	−0.0039**	−0.0036*
Population density	0.002	0.002	0.002	0.002	0.002	0.002	0.002	0.002
Branch density	0.0514	−0.0277	0.0527	−0.0311	0.0735	0.0495	−0.0253	−0.0124
Branch density	0.16	0.162	0.122	0.126	0.193	0.203	0.163	0.163
Gini index	−0.1296	−0.101	−0.1314	−0.124	−0.1148	−0.0978	−0.0955	−0.1031
Gini index	0.086	0.087	0.082	0.083	0.098	0.103	0.088	0.089
Senior index	0.0051	0.006	0.0052	0.0054	0.0041	0.0034	0.0054	0.0059
Senior index	0.008	0.008	0.007	0.007	0.009	0.010	0.008	0.008
Seismic risk	0.0228**	0.0260***	0.0231**	0.0243***	0.0278**	0.0215*	0.0256**	0.0233**
Seismic risk	0.010	0.010	0.009	0.009	0.012	0.011	0.010	0.010
Rural areas							0.0048	0.0031
Rural areas							0.010	0.011
Altitude								1.08E−05
Altitude								0.000
Coastal municipality								−0.0143
Coastal municipality								0.012
Intercept	−0.0281	−0.0272	−0.0269	−0.0211	−0.0131	−0.0089	−0.0287	−0.023
Intercept	0.040	0.040	0.037	0.037	0.046	0.048	0.041	0.041
Observations	4266	4266	4266	4,266	3,446	3,446	4,266	4,266
Model test	3,964.353	4024.145	116.3	97.95	2847.34	2849.52	4023.596	4025.197
Model test p-value	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000
R-squared	0.486	0.490	0.455	0.456	0.459	0.461	0.490	0.490
Heteroskedasticity test	615.35	598.34
Heterosked. test p-value	0.000	0.000
Number of groups/clusters	863	863	863	863	694	694	863	863
Endogeneity test			1.219	1.377
Endogeneity test p-value			0.269	0.241
Hansen J test			65.98	74.14
Hansen J test p-value			0.646	0.474

Note(s): ***p < 0.01, **p < 0.05, *p < 0.1. The standard errors are reported in italics. The dependent variable is ROA calculated using P/L before tax. Sector and year dummies are always included but not reported

Source(s): Authors own work

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