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Determinants of innovation performance of Portuguese companies: an econometric analysis by type of innovation and sector with a particular focus on Services

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  • Lilian Santos

    (Faculdade de Economia, Universidade do Porto)

  • Aurora A.C. Teixeira

    (CEF.UP, Faculdade de Economia, Universidade do Porto; INESC Porto; OBEGEF; UTEN)

Abstract

The acknowledged importance of innovation and the increasingly decisive role played by the service sector make innovation an issue of major relevance to the economy. Using a sample of 6593 companies that answered the Community Innovation Survey 2008, we assessed the determinants of innovation of Portuguese companies by comparing the service sector and other sectors of activity (specifically, manufacturing industry, utilities and construction). Among the main results obtained, we highlighted: 1) the non-linear impact of human capital on the innovation performance of companies – Master degree emerges as a critical factor in corporate innovation, whereas the PhD level is negatively related to companies innovation performance; 2) knowledge-sourcing activities (systematic R&D achievements, innovation-based training, purchase of machinery and equipment for innovation) appear as central to firms’ innovation process; 3) although university-company relationships are weak and have a neglible impact on the generality of companies’ propensity to innovate, they tend to be rather important for the innovation performance of services companies; 4) participation in innovation activities in cooperation with foreign partners appears as a key factor in the innovative performance; 5) companies in the service sector in general, and in Knowledge-Intensive Business Services in particular, that effectively and continuously invest in R&D activities are most innovative.

Suggested Citation

  • Lilian Santos & Aurora A.C. Teixeira, 2013. "Determinants of innovation performance of Portuguese companies: an econometric analysis by type of innovation and sector with a particular focus on Services," FEP Working Papers 494, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:494
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    More about this item

    Keywords

    Innovation performance; Services; Types of innovations; Innovation determinants; Portugal;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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