Template-type: ReDIF-Paper 1.0
Author-Name: Manera, Maria
Author-Email: maria.manera@unito.it
Author-Workplace-Name: Department of Economics and Statistics Cognetti de
Martiis, University of Turin, Italy
Author-Workplace-Homepage: https://www.est.unito.it
Author-Name: Quatraro, Francesco
Author-Email: francesco.quatraro@unito.it
Author-Workplace-Name: Department of Economics and Statistics Cognetti de
Martiis, University of Turin, Italy
Author-Workplace-Homepage: https://www.est.unito.it
Author-Name: Spinazzola, Matteo
Author-Email: matteo.spinazzola@unito.it
Author-Workplace-Name: Department of Economics and Statistics Cognetti de
Martiis, University of Turin, Italy
Author-Workplace-Homepage: https://www.est.unito.it
Author-Name: Tomas-Porres, Josep
Author-Email: josep.tomasporres@unito.it
Author-Workplace-Name: Department of Economics and Statistics Cognetti de
Martiis, University of Turin, Italy
Author-Workplace-Homepage: https://www.est.unito.it

Title: Price shocks, exposure to critical raw materials and innovation
Abstract: This paper investigates the relationship between exposure to
critical raw materials (CRMs) and firms’ innovation performance. We develop
a novel measure of CRM exposure by applying natural language processing
techniques to patent abstracts and mapping collaboration networks. Using
this framework, we analyze the determinants of CRM exposure, its
association with innovation outcomes, and the impact of price shocks on
firms’ innovative activity. Our findings reveal that CRM exposure is a
highly persistent phenomenon shaped by sunk costs, knowledge accumulation,
and increasing returns to specialization. Larger firms engaged in extensive
collaboration networks are more likely to be exposed, benefiting from
greater resource availability and absorptive capacity. Under stable market
conditions, CRM exposure is positively associated with both the intensity
and specialization of firms’ innovation. However, price shocks
substantially undermine innovation performance, particularly in CRM-related
technological domains. These results underscore the need for industrial
policies that aim to stabilize supply chains, support exposed companies and
strengthen the resilience of critical high-tech sectors.
Length: 33 pages
Creation-Date: 2025-05

File-URL: https://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2025dip/wp_07_2025.pdf
File-Format: Application/PDF
Handle: RePEc:uto:dipeco:202507