The impact of innovation on economic performance in services

By Giulio Cainelli, Rinaldo Evangelista, M. Savona. 2004

269 citations recorded by the source corpus.

This article empirically explores the relationship between innovation and economic performance in services at the firm level. The empirical analysis is based on a unique longitudinal firm-level data set, which matches the Italian Community Innovation Survey (CIS II) data (1993–1995) and a set of economic indicators provided by the Italian System of Enterprise Account (1993–1998). In particular the empirical analysis aims at assessing whether the presence of innovation and the amount of resources devoted to innovation are able to explain the economic performance of firms in the service sector. The results presented show that innovating firms out perform non-innovating firms in terms of productivity levels and economic growth. Productivity is also found to be linked to the amount of innovation expenditures, especially those devoted to the acquisition and internal development of new software.

Subfields: Economics and Econometrics, Marketing

View Paper: https://www.semanticscholar.org/paper/c586a99d4b626eddf00178861074e738964342f4

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Citations in the corpus

Innovation capability for SME success: perspectives of financial and operational performance (2014, background): “(1977), Samson and Terziovski (1999), Tang (1999), Calantone et al. (2002), Guan and Ma (2003), Otala (2003), Wang and Ahmed (2004), Martensen et al.”
Innovation, productivity and growth in US business services: a firm-level analysis (2008, methodology): “Cainelli et al., (2004) note that much of the evidence in the field is descriptive and not supported by robust evidence, especially at the firm level.”
Innovation and performance in Spanish manufacturing SMEs (2008, background): “Cainelli et al. (2004) and Regev (1998) found that innovating firms had higher labour productivity and sales growth than non-innovating firms.”
Internationalization Orientation in SMEs: The Mediating Role of Technological Innovation (2019, background): “…include first mover advantages (Porter, 1980), brand loyalty and reduced price sensitivity of customers (Liberman and Montgomery, 1988), learning in identifying, assimilating and applying knowledge (Van De Ven and Polley, 1992); increased productivity and economic growth (Cainelli et al., 2004).”