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Characteristics of the innovation activities of firms in Europe: a critical review of international differences

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  • Vokoun Marek

    (Department of Management, Institute of Technology and Business in České Budějovice, Okružní 517/10, 370 01, Czech Republic.)

Abstract

A sample of 18 papers and 32 data sets revealed 210,404 firm level observations about European firms making decisions about innovation. A total of 66,965 observations describe activities of innovators between 1986 and 2008. This paper used a basic literature review to assess properties of innovation among quite rare full CDM (Crépon, Duguet, and Mairesse) papers. This study compared results from two systems of estimation and showed that both international and regional comparisons are rather problematic because of different definitions of innovation variables and data set representativeness. On average, a typical firm that engaged in innovation was a large firm competing in international markets in the sample of firms with 20+ employees. Smaller firms, however, invested more in research and development (R&D) and no linear relationship was found for output characteristics. Cooperation on R&D projects increased overall innovation intensity. There is strong evidence that public funding had an ambiguous effect on R&D spending and no additional effect on innovation output on average. This output measured by sales from innovated goods and services was on average in a positive relationship with labour productivity; however, a detailed view suggested this effect was present only in product innovation. In this paper, it is shown that results of innovation studies cannot be compared or used in research without deeper analysis of the data sample (micro companies, industries, active firms, entrants etc.), dependent variable (innovator, R&D expenditures, sales, productivity, new product, new service etc.) and the baseline company that is defined by independent variables.

Suggested Citation

  • Vokoun Marek, 2017. "Characteristics of the innovation activities of firms in Europe: a critical review of international differences," Review of Economic Perspectives, Sciendo, vol. 17(3), pages 239-262, September.
    • Handle: RePEc:vrs:reoecp:v:17:y:2017:i:3:p:239-262:n:2
    DOI: 10.1515/revecp-2017-0013
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    References listed on IDEAS

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    1. Mairesse, Jacques & Mohnen, Pierre, 2010. "Using Innovation Surveys for Econometric Analysis," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1129-1155, Elsevier.
    2. Wladimir Raymond & Pierre Mohnen & Franz Palm & Sybrand Loeff, 2006. "A Classification of Dutch Manufacturing based on a Model of Innovation," De Economist, Springer, vol. 154(1), pages 85-105, March.
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    14. Jaan Masso & Priit Vahter, 2008. "Technological innovation and productivity in late-transition Estonia: econometric evidence from innovation surveys," The European Journal of Development Research, Taylor and Francis Journals, vol. 20(2), pages 240-261.
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    18. Marek Vokoun, 2014. "R&D and Innovation Activities ? Search for Better Definitions and an Economic-Historical Approach," Proceedings of Economics and Finance Conferences 0402131, International Institute of Social and Economic Sciences.
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    21. Hashi, Iraj & Stojčić, Nebojša, 2013. "The impact of innovation activities on firm performance using a multi-stage model: Evidence from the Community Innovation Survey 4," Research Policy, Elsevier, vol. 42(2), pages 353-366.
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    23. Marek Vokoun, 2016. "Innovation behaviour of firms in a small open economy: the case of the Czech manufacturing industry," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 43(1), pages 111-139, February.
    24. Richard C. Levin & Alvin K. Klevorick & Richard R. Nelson & Sidney G. Winter, 1987. "Appropriating the Returns from Industrial Research and Development," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(3, Specia), pages 783-832.
    25. Richard Gilbert, 2006. "Looking for Mr. Schumpeter: Where Are We in the Competition-Innovation Debate?," NBER Chapters, in: Innovation Policy and the Economy, Volume 6, pages 159-215, National Bureau of Economic Research, Inc.
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    2. Cvik Eva Daniela & Pelikánová Radka MacGregor & Malý Michal, 2018. "Selected Issues from the Dark Side of the General Data Protection Regulation," Review of Economic Perspectives, Sciendo, vol. 18(4), pages 387-407, December.
    3. Marek Vokoun & Jiřina Jílková, 2020. "Eco-Innovation Activities in the Czech Economy 2008–2014: Impact of the Eco-Innovative Approach to the Profit Stream and Differences in Urban and Rural Enterprises," Economies, MDPI, vol. 8(1), pages 1-20, January.

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    More about this item

    Keywords

    Innovation; Europe; attributes; properties; decision to innovate; expenditures; value added;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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