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The Impact of Technological and Non-Technological Innovations on Firm Growth

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  • Ali-Yrkkö, Jyrki
  • Martikainen, Olli

Abstract

This study investigates the relationship between innovations and firm growth, based on the data of Finnish firms operating in the software industry. We find that in terms of turnover and employment, firms with only technological innovations do not grow more rapidly than other firms. However, firm growth is positively associated with the combination of technological and non-technological innovations.

Suggested Citation

  • Ali-Yrkkö, Jyrki & Martikainen, Olli, 2008. "The Impact of Technological and Non-Technological Innovations on Firm Growth," Discussion Papers 1165, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:dpaper:1165
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    References listed on IDEAS

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    1. Piergiuseppe Morone & Giuseppina Testa, 2008. "Firms Growth, Size And Innovation An Investigation Into The Italian Manufacturing Sector," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(4), pages 311-329.
    2. Evans, David S, 1987. "Tests of Alternative Theories of Firm Growth," Journal of Political Economy, University of Chicago Press, vol. 95(4), pages 657-674, August.
    3. Schmidt, Tobias & Rammer, Christian, 2007. "Non-technological and Technological Innovation: Strange Bedfellows?," ZEW Discussion Papers 07-052, ZEW - Leibniz Centre for European Economic Research.
    4. Del Monte, Alfredo & Papagni, Erasmo, 2003. "R&D and the growth of firms: empirical analysis of a panel of Italian firms," Research Policy, Elsevier, vol. 32(6), pages 1003-1014, June.
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    Cited by:

    1. Gang Zheng & Yanting Guo & Yajuan Wang, 2016. "Non-R&D Innovation Patterns in Chinese SMEs: An Empirical Study from Zhejiang Province," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 13(06), pages 1-20, December.
    2. Jian Hou & Jiancheng Chen & Hongfeng Song & Gang Wang, 2018. "Are Non-R&D Innovation Activities Actually Effective for Innovation Sustainability? Empirical Study from Chinese High-Tech Industry," Sustainability, MDPI, vol. 11(1), pages 1-14, December.

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    More about this item

    Keywords

    innovation; technological; non-technological; research and development; firm; turnover; employment; growth; Finland;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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