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Measuring Innovation in European Industry

Author

Listed:
  • Rinaldo Evangelista
  • Tore Sandven
  • Giorgio Sirilli
  • Keith Smith

Abstract

This paper analyses the results of the 1993 Community Innovation Survey (CIS). Fifty per cent of European firms introduced a product or process innovation during 1990-92. The share of innovating firms varies between industrial sectors and firm size. The percentage of innovating firms is higher for large firms than for smaller ones. In high-tech sectors this share is two thirds and for traditional ones is one third. The largest part of firms' expenditure for innovation is linked to the adoption and diffusion of technologies through machinery and equipment, which absorbs 50% of firms' innovation expenditure. R&D activities represent, on average, 20% of total innovation expenditure while other innovative activities, such as design and trial production, account respectively for 10% and 11%. The mix of innovation inputs, especially R&D and investment, is strongly correlated with firm size, displays little change across countries and varies greatly across industries.

Suggested Citation

  • Rinaldo Evangelista & Tore Sandven & Giorgio Sirilli & Keith Smith, 1998. "Measuring Innovation in European Industry," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 5(3), pages 311-333.
    • Handle: RePEc:taf:ijecbs:v:5:y:1998:i:3:p:311-333
    DOI: 10.1080/13571519884413
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    References listed on IDEAS

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    1. Cohen, Wesley M. & Levin, Richard C., 1989. "Empirical studies of innovation and market structure," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 18, pages 1059-1107, Elsevier.
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    4. Keith Smith & Georgio Sirilli & Tore Sandven & Rinaldo Evangelista, "undated". "Innovation Expenditures in European Industry," STEP Report series 199705, The STEP Group, Studies in technology, innovation and economic policy.
    5. Zoltan Acs & David Audretsch, 1990. "Innovation and Small Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011131, December.
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    Cited by:

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    3. Edquist , Charles & Zabala-Iturriagagoitia , Jon Mikel, 2015. "The Innovation Union Scoreboard is flawed: The Case of Sweden – not the innovation leader of the EU – updated version," Papers in Innovation Studies 2015/27, Lund University, CIRCLE - Centre for Innovation Research.
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    12. T. Joseph Musandiwa & Collins C. Ngwakwe, 2020. "Effect of Technology Adoption on New Product Innovation," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 18(3 (Fall)), pages 177-194.
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    14. Manuel Mira Godinho & Sandro F. Mendonça & Tiago Santos Pereira, 2005. "Towards a taxonomy of innovation systems," Working Papers Department of Economics 2005/13, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
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    16. Olsen, Jane & Lee, Boon-Chye & Hodgkinson, Ann, 2006. "Innovation in Small and Medium-Sized Enterprises: A Study of Businesses in New South Wales, Australia," Economics Working Papers wp06-04, School of Economics, University of Wollongong, NSW, Australia.
    17. Edquist , Charles & Zabala-Iturriagagoitia , Jon Mikel, 2015. "The Innovation Union Scoreboard is Flawed: The case of Sweden – not being the innovation leader of the EU," Papers in Innovation Studies 2015/16, Lund University, CIRCLE - Centre for Innovation Research.
    18. Tim Mazzarol & Sophie Reboud, 2005. "Customers as Predictors of Rent Returns to Innovation and Small Firms – an exploratory study," Post-Print hal-00472438, HAL.
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    20. E. Cefis & A. Sabidussi & E.J.J Schenk, 2007. "Do mergers of potentially dominant firms foster innovation? An empirical analysis for the manufacturing sector," Working Papers 07-20, Utrecht School of Economics.
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