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Determinants of innovation in a small open economy: a multidimensional perspective

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  • Luísa Carvalho
  • Teresa Costa
  • Jorge Caiado

Abstract

This paper uses logistic regression analysis to examine how intramural and extramural R&D, acquisition of machinery, equipment and software, acquisition of external knowledge, training, market introduction and other procedures and technical preparations determine the innovation behaviour of manufacturing and service firms. We adopt a multidimensional view of innovation by considering product, process, organizational and marketing innovations as dependent variables separately. The study reports on the Community Innovation Survey (CIS4) of a small open-economy country. The empirical results indicate that intramural R&D has a positive impact on innovation. In contrast, the influence of extramural R&D on innovation is unclear. All innovation activities contribute towards organizational innovation. The study also suggests that there are no significant differences between services and manufacturing firms concerning the propensity to innovation.

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  • Luísa Carvalho & Teresa Costa & Jorge Caiado, 2013. "Determinants of innovation in a small open economy: a multidimensional perspective," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 14(3), pages 583-600, June.
  • Handle: RePEc:taf:jbemgt:v:14:y:2013:i:3:p:583-600
    DOI: 10.3846/16111699.2012.701225
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    Cited by:

    1. Juana Sanchez, 2014. "Innovation Output Choices And Characteristics Of Firms In The U.S," Working Papers 14-42, Center for Economic Studies, U.S. Census Bureau.
    2. Ye Seul Choi & Up Lim, 2017. "Contextual Factors Affecting the Innovation Performance of Manufacturing SMEs in Korea: A Structural Equation Modeling Approach," Sustainability, MDPI, vol. 9(7), pages 1-15, July.
    3. Michael Pearson & Ignazio Cabras, 2014. "Innovation And Connectivity In Northern European Technical Cooperation Networks," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 18(04), pages 1-24.
    4. Hannu Littunen & Timo Tohmo & Esa Storhammar, 2021. "Innovation among SMEs in Finland: The impact of stakeholder engagement and firm-level characteristics," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 17(4), pages 157-196.
    5. Egbetokun A. & Oluwatope O. & Adeyeye D. & Sanni M., 2014. "The role of industry and economic context in open innovation: Evidence from Nigeria," MERIT Working Papers 2014-073, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Juana Sanchez, 2014. "Non-technological and Mixed Modes of Innovation in the United States. Evidence from the Business Research and Development and Innovation Survey, 2008-2011," Working Papers 14-35, Center for Economic Studies, U.S. Census Bureau.
    7. Egbetokun, Abiodun A., 2015. "Interactive learning and firm-level capabilities in latecomer settings: The Nigerian manufacturing industry," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 231-241.
    8. Luísa Carvalho & Maria José Madeira & João Carvalho & Dulcineia Catarina Moura & Filipe P. Duarte, 2018. "Cooperation for Innovation in the European Union: Outlook and Evidences Using CIS for 15 European Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(2), pages 506-525, June.

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    More about this item

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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