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Innovation decision of Tunisian service firms: an empirical analysis

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  • Hanen SDIRI
  • Mohamed AYADI

Abstract

Innovation is widely recognized as a key driver of economic growth and competitiveness. Previous works dealing with it has specially focused on its effect on the economic performance of innovators. In this context, the literature distinguishes between four kinds of innovation: product, process, radical and incremental. Indeed, despite their importance, the innovation determinants and the innovation making-decision are less studied. Based on a sample of 108 Tunisian service firms, the purpose of this paper is to find out the way by which firms make their decision to innovate: simultaneously (one-stage model) or sequentially (twostage model). We obtain that the two-stage model has a statistically significant advantage in predicting innovation. In practice, we argue that the sequential model illustrates well the innovation making-decision procedures.

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Bibliographic Info

Paper provided by Department of Research, Ipag Business School in its series Working Papers with number 2014-092.

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Length: 17 pages
Date of creation: 12 Feb 2014
Date of revision:
Handle: RePEc:ipg:wpaper:2014-092

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Keywords: Innovation; Decision making; Service sector;

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  1. Becker, Wolfgang & Dietz, Jurgen, 2004. "R&D cooperation and innovation activities of firms--evidence for the German manufacturing industry," Research Policy, Elsevier, vol. 33(2), pages 209-223, March.
  2. Pierre Mohnen & Pierre Therrien, 2005. "Comparing the Innovation Performance in Canadian, French and German Manufacturing Enterprises," CIRANO Working Papers 2005s-33, CIRANO.
  3. Hans Loof & Almas Heshmati, 2006. "On the relationship between innovation and performance: A sensitivity analysis," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 317-344.
  4. DUGUET Emmanuel, 2004. "Innovation height, spillovers and TFP growth at the firm level: Evidence from French manufacturing," Development and Comp Systems 0411017, EconWPA.
  5. Giulio Cainelli & Rinaldo Evangelista & Maria Savona, 2006. "Innovation and economic performance in services: a firm-level analysis," Cambridge Journal of Economics, Oxford University Press, vol. 30(3), pages 435-458, May.
  6. Sirilli, Giorgio & Evangelista, Rinaldo, 1998. "Technological innovation in services and manufacturing: results from Italian surveys," Research Policy, Elsevier, vol. 27(9), pages 881-899, December.
  7. Baldwin,John R. & Hanel,Petr, 2003. "Innovation and Knowledge Creation in an Open Economy," Cambridge Books, Cambridge University Press, number 9780521810869, October.
  8. Bruno Crépon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation and Productivity : An Econometric Analysis at the Firm Level," Working Papers 98-33, Centre de Recherche en Economie et Statistique.
  9. repec:fth:inseep:9833 is not listed on IDEAS
  10. Cohen, Wesley M & Klepper, Steven, 1996. "Firm Size and the Nature of Innovation within Industries: The Case of Process and Product R&D," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 232-43, May.
  11. Gallouj, Faiz & Weinstein, Olivier, 1997. "Innovation in services," Research Policy, Elsevier, vol. 26(4-5), pages 537-556, December.
  12. Petr Hanel, 2004. "Innovation in the Canadian Service Sector," Cahiers de recherche 04-03, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
  13. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
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