IDEAS home Printed from https://ideas.repec.org/p/stp/stepre/1997r05.html
   My bibliography  Save this paper

Innovation Expenditures in European Industry

Author

Listed:

Abstract

This report uses data from the Community Innovation Survey to explore expenditures on innovation by European firms. It analyses the level and structure of three types of innovation investment across European industry: R&D, non-R&D expenditures (such as design activities), and capital investments linked to the innovation of new products. Although we have long had good data on R&D, we have lacked data on the other main categories of innovation expenditure. This is a serious problem, since one of the most important themes of modern innovation analysis has been the importance of non-R&D inputs to innovation. A related issue is expenditure on the acquisition of capital and intermediate goods, embodying new technologies. This type of investment, which is linked to both product and process change, has long been recognised as a key ‘carrier’ of technological advance. After discussing the data itself, we provide in Chapter One a general overview of the structure and characteristics of innovation expenditures across European industry. We then turn, in Chapter Two and Three to a more technical analysis of the data. The analysis seeks to explore two main issues: Can we identify industry-specific features of the level of innovation expenditures in European? That is to say, when we look at an industry, is the extent or intensity of innovation expenditure consistent across countries in Europe, or do these levels vary across countries? How does the composition of innovation inputs vary across industries, and is such variation consistent across countries in Europe? One of the basic problems for European innovation policy is to distinguish between the appropriate levels for policy action. What, for example, should be the tasks or areas of responsibility of the European Commission vis-a-vis the Member States? Such questions depend on the characteristics of innovation processes in Europe. Do industries in Europe have significant features in common? Is the structure of innovation inputs similar in the same industry across Europe? Or are there country-specific features (perhaps reflecting different national innovation systems)? If there is a common European level, then we may be able to identify - at least in a broad way – commonalities of innovation input where problems may arise which are appropriate arenas for European action. On the other hand, if innovation at industry level is characterised by strong country-specific features, then policies directed to specific industries or activities might best be undertaken at Member State level. This data strongly shows the importance of industry-level effects, rather than country-level effects: European industries appear to have strong commonalities in terms of innovation expenditures.

Suggested Citation

  • Keith Smith & Georgio Sirilli & Tore Sandven & Rinaldo Evangelista, "undated". "Innovation Expenditures in European Industry," STEP Report series 199705, The STEP Group, Studies in technology, innovation and economic policy.
  • Handle: RePEc:stp:stepre:1997r05
    as

    Download full text from publisher

    File URL: http://www.step.no/reports/Y1997/0597.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cohen, Wesley M. & Levin, Richard C., 1989. "Empirical studies of innovation and market structure," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 18, pages 1059-1107, Elsevier.
    2. Archibugi, Daniele & Cesaratto, Sergio & Sirilli, Giorgio, 1991. "Sources of innovative activities and industrial organization in Italy," Research Policy, Elsevier, vol. 20(4), pages 299-313, August.
    3. Zoltan Acs & David Audretsch, 1990. "Innovation and Small Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011131, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rinaldo Evangelista & Tore Sandven & Giorgio Sirilli & Keith Smith, 1998. "Measuring Innovation in European Industry," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 5(3), pages 311-333.
    2. Javier Revilla Diez & Pere Escorsa & Jaime Alberto Camacho, 1998. "Innovation potentials and innovative networks in European metropolitan regions: Some empirical evidence from the Metropolitan Area of Barcelona," ERSA conference papers ersa98p126, European Regional Science Association.
    3. Rita Almeida & Ana Margarida Fernandes, 2008. "Openness and Technological Innovations in Developing Countries: Evidence from Firm-Level Surveys," Journal of Development Studies, Taylor & Francis Journals, vol. 44(5), pages 701-727.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rinaldo Evangelista & Tore Sandven & Giorgio Sirilli & Keith Smith, 1998. "Measuring Innovation in European Industry," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 5(3), pages 311-333.
    2. H. T. Tran & E. Santarelli, 2013. "Determinants and Effects of Innovative Activities in Vietnam. A Firm-level Analysis," Working Papers wp909, Dipartimento Scienze Economiche, Universita' di Bologna.
    3. Tether, B. S. & Smith, I. J. & Thwaites, A. T., 1997. "Smaller enterprises and innovation in the UK: the SPRU innovations database revisited," Research Policy, Elsevier, vol. 26(1), pages 19-32, March.
    4. Michael L. Katz & Howard A. Shelanski, 2005. "Merger Policy and Innovation: Must Enforcement Change to Account for Technological Change?," NBER Chapters, in: Innovation Policy and the Economy, Volume 5, pages 109-165, National Bureau of Economic Research, Inc.
    5. Baldwin, John R., 1999. "Un portrait des entrees et des sorties," Direction des études analytiques : documents de recherche 1999121f, Statistics Canada, Direction des études analytiques.
    6. Elisabeth Müller & Volker Zimmermann, 2009. "The importance of equity finance for R&D activity," Small Business Economics, Springer, vol. 33(3), pages 303-318, October.
    7. Mueller, Elisabeth & Zimmermann, Volker, 2006. "The Importance of Equity Finance for R&D Activity: Are There Differences Between Young and OldCompanies?," ZEW Discussion Papers 06-014, ZEW - Leibniz Centre for European Economic Research.
    8. de Jong, Jeroen P.J. & Marsili, Orietta, 2006. "The fruit flies of innovations: A taxonomy of innovative small firms," Research Policy, Elsevier, vol. 35(2), pages 213-229, March.
    9. Baldwin, John R., 1999. "A Portrait of Entrants and Exits," Analytical Studies Branch Research Paper Series 1999121e, Statistics Canada, Analytical Studies Branch.
    10. Baumann, Julian & Kritikos, Alexander S., 2016. "The link between R&D, innovation and productivity: Are micro firms different?," Research Policy, Elsevier, vol. 45(6), pages 1263-1274.
    11. Flaig, Gebhard & Stadler, Manfred, 1996. "On the dynamics of product and process innovations: A bivariate random effects probit model," Tübinger Diskussionsbeiträge 64, University of Tübingen, School of Business and Economics.
    12. Joshua Drucker, 2009. "Trends in Regional Industrial Concentration in the United States," Working Papers 09-06, Center for Economic Studies, U.S. Census Bureau.
    13. Doh, Soogwan & Kim, Byungkyu, 2014. "Government support for SME innovations in the regional industries: The case of government financial support program in South Korea," Research Policy, Elsevier, vol. 43(9), pages 1557-1569.
    14. Olsen, Jane & Lee, Boon-Chye & Hodgkinson, Ann, 2006. "Innovation in Small and Medium-Sized Enterprises: A Study of Businesses in New South Wales, Australia," Economics Working Papers wp06-04, School of Economics, University of Wollongong, NSW, Australia.
    15. John Sutton, 1996. "Gibrats Legacy," STICERD - Economics of Industry Papers 14, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    16. Rinaldo Evangelista & Valeria Mastrostefano, 2006. "Firm size, sectors and countries as sources of variety in innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(3), pages 247-270.
    17. Gellatly, Guy & Baldwin, John R., 1998. "Are There High-tech Industries or Only High-tech Firms? Evidence from New Technology-based Firms," Analytical Studies Branch Research Paper Series 1998120e, Statistics Canada, Analytical Studies Branch.
    18. Wittkopp, Antje, 2002. "Marktstruktur, Innovationsaktivität und Profitabilität der deutschen Ernährungswirtschaft: Das Beispiel Functional Food," FE Working Papers 0205, Christian-Albrechts-University of Kiel, Department of Food Economics and Consumption Studies.
    19. Mariacristina Piva & Marco Vivarelli, 2007. "Is demand-pulled innovation equally important in different groups of firms?," Cambridge Journal of Economics, Oxford University Press, vol. 31(5), pages 691-710, September.
    20. Martin Falk & Hannes Leo, 2004. "Die Innovationsaktivitäten der österreichischen Unternehmen. Empirische Analysen auf Basis der Europäischen Innovationserhebung 1996 und 2000," WIFO Studies, WIFO, number 25249, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:stp:stepre:1997r05. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nils Henrik Solum (email available below). General contact details of provider: https://edirc.repec.org/data/steppno.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.