Innovation and firm performance
AbstractIn this paper, the current state of knowledge regarding the relation between innovation and firm performance is reviewed. The relationship is empirically tested. There is a special focus on small and medium-sized firms. In the literature, there is a trend towards a system approach. Empirical studies using this approach distinguish four parts in the innovation-performance relationship. First of all, a company decides whether or not to innovate. Secondly, if a company decides to innovate, what is the level of input in innovation. The innovative input will be transformed into innovative output. And finally, the innovative output will result in a better firm performance. In the model several feedback loops are incorporated, for instance, from firm performance to innovative input.
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Bibliographic InfoPaper provided by EIM Business and Policy Research in its series Scales Research Reports with number H200207.
Length: 67 pages
Date of creation: 21 Jan 2003
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- Spyros Arvanitis & Thomas Bolli, 2009. "A Comparison of Firm-level Innovation Cooperation in Five European Countries," KOF Working papers 09-232, KOF Swiss Economic Institute, ETH Zurich.
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- Nebojša Stojcic & Heri Bezic, 2012. "Restructuring and Barriers: Cross-Country Evidence on the Competitiveness of Exporters in Transition," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 10(2 (Summer), pages 145-170.
- Rosenbusch, Nina & Brinckmann, Jan & Bausch, Andreas, 2011. "Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs," Journal of Business Venturing, Elsevier, vol. 26(4), pages 441-457, July.
- Gruian Claudiu-Marian, 2011. "Modern Factors That Enhance Company'S Financial Performance," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 169-175, December.
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