Design and European firms’ innovative performance: Evidence from European CIS non anonymous data
AbstractThe objective of this study is to provide an analysis of the importance of design – defined as the procedures, choice of elements and technical preparation to implement a new product – and R&D investments as drivers of European firms’ innovation performance. In doing so, it partly compensates for the lack of empirical evidence in the literature by using non-anonymised data from the third wave of the European CIS, and estimating a system of simultaneous equations to tackle the endogeneity inherent in these investment choices and the externalities associated with them. The choice to use this time period rather than more recent is data-driven as this wave contains better information on design expenditures. Unlike the majority of CIS-based studies, the main variables of interest are continuous ones. In addition, although pure aesthetic changes are not included in the CIS definition of innovative design expenditures, the impact of this important dimension of product innovativeness is properly accounted for. The robustness of results confirms the crucial role of design investment for innovation success in 23 European countries for both the manufacturing and service sectors and its role as a complement to technological R&D and as a driver for user-centred incremental (new-to-the-firm) and radical (new-to-the-market) innovations. In particular it found an increase of 1% expenditure increases innovation sales by between 0.34% and 0.49%, while the same increase in R&D investment increases innovation sales by between 0.64% and 0.86%. Interestingly, while investing in design shows no statistically different innovation output returns for small, medium-sized and large enterprises, this is not the case for R&D expenditures. The policy conclusions are clear: design is a less costly alternative to R&D for many SMEs and a policy of supporting design should be considered, as this might be a more cost-efficient support strategy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute of Prospective Technological Studies, Joint Research Centre in its series JRC-IPTS Working Papers on Corporate R&D and Innovation with number 2011-08.
Length: 59 pages
Date of creation: Dec 2011
Date of revision:
Intangibles; design; R&D investment; CIS; CDM model;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-02-20 (All new papers)
- NEP-EUR-2012-02-20 (Microeconomic European Issues)
- NEP-INO-2012-02-20 (Innovation)
- NEP-KNM-2012-02-20 (Knowledge Management & Knowledge Economy)
- NEP-SBM-2012-02-20 (Small Business Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mohnen, Pierre & Bérubé, Charles, 2007.
"Are Firms That Received R&D Subsidies More Innovative?,"
UNU-MERIT Working Paper Series
015, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
- Charles Bérubé & Pierre Mohnen, 2009. "Are firms that receive R&D subsidies more innovative?," Canadian Journal of Economics, Canadian Economics Association, vol. 42(1), pages 206-225, February.
- Charles Bérubé & Pierre Mohnen, 2007. "Are Firms That Received R&D Subsidies More Innovative?," CIRANO Working Papers 2007s-13, CIRANO.
- Mohnen, Pierre & Mairesse, Jacques, 2010.
"Using Innovation Surveys for Econometric Analysis,"
UNU-MERIT Working Paper Series
023, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
- Jacques Mairesse & Pierre Mohnen, 2010. "Using Innovation Surveys for Econometric Analysis," CIRANO Working Papers 2010s-15, CIRANO.
- Jacques Mairesse & Pierre Mohnen, 2010. "Using Innovations Surveys for Econometric Analysis," NBER Working Papers 15857, National Bureau of Economic Research, Inc.
- De Bondt, Raymond, 1997. "Spillovers and innovative activities," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/101206, Katholieke Universiteit Leuven.
- Breschi, Stefano & Lissoni, Francesco, 2001.
"Knowledge Spillovers and Local Innovation Systems: A Critical Survey,"
Industrial and Corporate Change,
Oxford University Press, vol. 10(4), pages 975-1005, December.
- Breschi, Stefano & Lissoni, Francesco, 2000. "Knowledge Spillovers And Local Innovation Systems: A Critical Survey," ERSA conference papers ersa00p362, European Regional Science Association.
- Stefano Breschi & Francesco Lissoni, 2001. "Knowledge spillovers and local innovation systems: a critical survey," LIUC Papers in Economics 84, Cattaneo University (LIUC).
- Billie Jo Zirger & Modesto A. Maidique, 1990. "A Model of New Product Development: An Empirical Test," Management Science, INFORMS, vol. 36(7), pages 867-883, July.
- Swann, Peter, 1990. "Product competition and the dimensions of product space," International Journal of Industrial Organization, Elsevier, vol. 8(2), pages 281-295, June.
- Cohen, Wesley M & Klepper, Steven, 1996. "A Reprise of Size and R&D," Economic Journal, Royal Economic Society, vol. 106(437), pages 925-51, July.
- Isabel Busom, 2000. "An Empirical Evaluation of The Effects of R&D Subsidies," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 9(2), pages 111-148.
- Villalonga, Belen, 2004. "Intangible resources, Tobin's q, and sustainability of performance differences," Journal of Economic Behavior & Organization, Elsevier, vol. 54(2), pages 205-230, June.
- Kamien, Morton I & Muller, Eitan & Zang, Israel, 1992. "Research Joint Ventures and R&D Cartels," American Economic Review, American Economic Association, vol. 82(5), pages 1293-306, December.
- Guidetti, Giovanni & Mazzanti, Massimiliano, 2007. "Firm-level training in local economic systems: Complementarities in production and firm innovation strategies," The Journal of Socio-Economics, Elsevier, vol. 36(6), pages 875-894, December.
- De Bondt, Raymond, 1997. "Spillovers and innovative activities," International Journal of Industrial Organization, Elsevier, vol. 15(1), pages 1-28, February.
- Eric von Hippel, 1986. "Lead Users: A Source of Novel Product Concepts," Management Science, INFORMS, vol. 32(7), pages 791-805, July.
- Gilberto Antonelli & Roberto Antonietti & Giovanni Guidetti, 2010.
"Organizational Change, Skill Formation, Human Capital Measurement: Evidence From Italian Manufacturing Firms,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 24(2), pages 206-247, 04.
- G. Antonelli & R. Antonietti & G. Guidetti, 2009. "Organizational Change, Skill Formation, Human Capital Measurement: Evidence From Italian Manufacturing Firms," Working Papers 661, Dipartimento Scienze Economiche, Universita' di Bologna.
- d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, vol. 78(5), pages 1133-37, December.
- Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
- Roberto Antonietti, 2011.
"From creativity to innovativeness: micro evidence from Italy,"
Openloc Working Papers
1117, Public policies and local development.
- Roberto Antonietti, 2012. "From creativity to innovativeness: micro evidence from Italy," ERSA conference papers ersa12p423, European Regional Science Association.
- Daria Ciriaci & Pietro Moncada-Paterno-Castello & Peter Voigt, 2012.
"Does size or age of innovative firms affect their growth persistence? Evidence from a panel of innovative Spanish firms,"
JRC-IPTS Working Papers
JRC74052, Institute for Prospective and Technological Studies, Joint Research Centre, revised Sep 2012.
- Daria Ciriaci & Pietro Moncada-Paternò-Castello & Peter Voigt, 2012. "Does size or age of innovative firms affect their growth persistence? -Evidence from a panel of innovative Spanish firms-," JRC-IPTS Working Papers on Corporate R&D and Innovation 2012-03, Institute of Prospective Technological Studies, Joint Research Centre.
- Daria Ciriaci & Fernando Hervas Soriano, 2012. "Bridging ideas with markets. The impact of training, marketing and design on innovation," JRC-IPTS Working Papers JRC75493, Institute for Prospective and Technological Studies, Joint Research Centre, revised Oct 2012.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rafael Castillo).
If references are entirely missing, you can add them using this form.