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Innovation at the Firm Level across Countries with Different Economic and Technological Capacity

Author

Listed:
  • Andreas Reinstaller
  • Fabian Unterlass

    (WIFO)

Abstract

This paper presents an analysis of innovation behaviour at the firm level across countries with different levels of technological capabilities and economic development. Using data from the Community Innovation Survey for 20 European countries the paper shows that the impact of total innovation expenditures – including next to R&D also outlays for technology transfer, the market introduction of innovations or new designs – increases monotonically across countries with their level of technological capabilities. R&D investments instead have a significant impact on the generation of innovations only for firms located in countries with higher levels of technological capabilities. Firm specific competencies to suggest or contribute to innovation projects have a more significant effect on the innovation output the higher the level of economic development of the countries in which firms are located. Finally, the paper presents also evidence that R&D does not generally increase the absorptive capabilities of firms.

Suggested Citation

  • Andreas Reinstaller & Fabian Unterlass, 2012. "Innovation at the Firm Level across Countries with Different Economic and Technological Capacity," WIFO Working Papers 436, WIFO.
    • Handle: RePEc:wfo:wpaper:y:2012:i:436
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    References listed on IDEAS

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    10. Andreas Reinstaller & Fabian Unterlass, 2012. "Comparing business R&D across countries over time: a decomposition exercise using data for the EU 27," Applied Economics Letters, Taylor & Francis Journals, vol. 19(12), pages 1143-1148, August.
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    Citations

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    Cited by:

    1. Michael Peneder, 2013. "Von den "trockenen Tälern" der Risiko- und Wachstumsfinanzierung," WIFO Monatsberichte (monthly reports), WIFO, vol. 86(8), pages 637-648, August.
    2. Andreas Reinstaller & Werner Hölzl & Johannes Kutsam & Christian Schmid, 2013. "The Development of Productive Structures of EU Member Countries and Their International Competitiveness," WIFO Studies, WIFO, number 46823, February.
    3. Andreas Reinstaller, 2014. "Technologiegeber Österreich. Österreichs Wettbewerbsfähigkeit in Schlüsseltechnologien und Enwicklungspotentiale als Technologiegeber," WIFO Studies, WIFO, number 47444, February.
    4. Gunther Tichy, 2016. "Persistente Strukturprobleme trotz zutreffender Strukturprognosen," WIFO Monatsberichte (monthly reports), WIFO, vol. 89(8), pages 553-571, August.
    5. Hölzl, Werner & Janger, Jürgen, 2014. "Distance to the frontier and the perception of innovation barriers across European countries," Research Policy, Elsevier, vol. 43(4), pages 707-725.
    6. Leonardo Rocha Andrade & Leonardo Q. Cardenas & Fernando Dias Lopes & Fernando P. S. Oliveira & Kaio Cesar Fernandes, 2018. "The Impact of R&D Investments on Performance of Firms in Different Degrees of Proximity to the Technological Frontier," Economics Bulletin, AccessEcon, vol. 38(2), pages 1156-1170.

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    Keywords

    Innovation decision; Catching up; Technological capabilities; R&D;
    All these keywords.

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