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Innovation and Performance: Benchmarking Australian Firms

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  • Simon Feeny
  • Mark Rogers

Abstract

This article empirically analyses the link between innovation and performance using a sample of large Australian firms, with a specific aim of developing benchmarking tools. Innovation is measured by firms' investment in R&D and applications for patents, trademarks and designs. An innovation index is constructed to provide one method of benchmarking. The index incorporates a firm's innovative activities into a single figure after accounting for firm size. The index provides a ranking of the most innovative firms in Australia. A second method of benchmarking uses a stochastic production frontier. This type of analysis identifies the firms which are located closest to a ‘best practice innovation frontier’.

Suggested Citation

  • Simon Feeny & Mark Rogers, 2003. "Innovation and Performance: Benchmarking Australian Firms," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 36(3), pages 253-264, September.
    • Handle: RePEc:bla:ausecr:v:36:y:2003:i:3:p:253-264
    DOI: 10.1111/1467-8462.00285
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    1. Cockburn, Iain & Griliches, Zvi, 1988. "Industry Effects and Appropriability Measures in the Stock Market's Valuation of R&D and Patents," American Economic Review, American Economic Association, vol. 78(2), pages 419-423, May.
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    Cited by:

    1. Yu-Shan Chen, 2011. "Using patent analysis to explore corporate growth," Scientometrics, Springer;Akadémiai Kiadó, vol. 88(2), pages 433-448, August.
    2. Ana Garcia-Bernabeu & José Manuel Cabello & Francisco Ruiz, 2020. "A Multi-Criteria Reference Point Based Approach for Assessing Regional Innovation Performance in Spain," Mathematics, MDPI, vol. 8(5), pages 1-21, May.
    3. Stephen Petrie & Mitchell Adams & Ben Mitra‐Kahn & Matthew Johnson & Russell Thomson & Paul Jensen & Alfons Palangkaraya & Elizabeth Webster, 2020. "TM‐Link: An Internationally Linked Trademark Database," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(2), pages 254-269, June.
    4. Coluccia, Daniela & Dabić, Marina & Del Giudice, Manlio & Fontana, Stefano & Solimene, Silvia, 2020. "R&D innovation indicator and its effects on the market. An empirical assessment from a financial perspective," Journal of Business Research, Elsevier, vol. 119(C), pages 259-271.
    5. Hyojeong Lim, 2015. "Impact of Intellectual Property Rights on Macroeconomic Growth : A Panel Data Study in Korea," Proceedings of International Academic Conferences 2503617, International Institute of Social and Economic Sciences.
    6. Efstathios G. Parcharidis & Nikos C. Varsakelis, 2010. "R&D and Tobin's q in an emerging financial market: the case of the Athens Stock Exchange," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(5), pages 353-361.
    7. Hai-Ao Zheng & Jean-Jacques Chanaron & Jian-Xin You & Xiao-Li Chen, 2009. "Designing a key performance indicator system for technological innovation audit at firm's level: A framework and an empirical study," Post-Print halshs-00946035, HAL.
    8. Santos, David Ferreira Lopes & Basso, Leonardo Fernando Cruz & Kimura, Herbert & Kayo, Eduardo Kazuo, 2014. "Innovation efforts and performances of Brazilian firms," Journal of Business Research, Elsevier, vol. 67(4), pages 527-535.
    9. Tomasz L. Nawrocki, 2015. "R&D Activity And Core Business Efficiency On The Example Of Technology Companies," Oeconomia Copernicana, Institute of Economic Research, vol. 6(4), pages 59-72, December.
    10. Don Jyh-Fu Jeng & Artur Pak, 2016. "The variable effects of dynamic capability by firm size: the interaction of innovation and marketing capabilities in competitive industries," International Entrepreneurship and Management Journal, Springer, vol. 12(1), pages 115-130, March.
    11. Víctor Torres-Preciado & Mayrén Polanco-Gaytán & Miguel Tinoco-Zermeño, 2014. "Technological innovation and regional economic growth in Mexico: a spatial perspective," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(1), pages 183-200, January.
    12. Ventsislava Nikolova-Minkova, 2022. "Bulgarian and Foreign Trademark Activity in Bulgaria and Bulgarian Trademark Activity Abroad for the Period 2000-2019," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 173-196.
    13. Teemu Makkonen & Robert P. Have, 2013. "Benchmarking regional innovative performance: composite measures and direct innovation counts," Scientometrics, Springer;Akadémiai Kiadó, vol. 94(1), pages 247-262, January.
    14. Luigi Luini & Andrea Mangani, 2004. "Trademarks, Product Variety, and Economic Activity in Italy and Europe," Department of Economics University of Siena 422, Department of Economics, University of Siena.
    15. Nasirov, Shukhrat, 2020. "Trademark value indicators: Evidence from the trademark protection lifecycle in the U.S. pharmaceutical industry," Research Policy, Elsevier, vol. 49(4).
    16. Nejla YACOUB, 2012. "Brevetabilité des médicament, innovation et l’avenir de l’industrie pharmaceutique en Tunisie DRUGS PATENTABILITY INNOVATION AND THE FUTURE OF THE PHARMACEUTICAL INDUSTRY IN TUNISIA THEORETICAL STUDY ," Working Papers 248, Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO / Research Unit on Industry and Innovation.
    17. Sasan Bakhtiari, 2023. "Changing Nature of Patents in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 56(3), pages 288-307, September.
    18. Viet Anh Ta & Chieh-Yu Lin, 2023. "Exploring the Determinants of Digital Transformation Adoption for SMEs in an Emerging Economy," Sustainability, MDPI, vol. 15(9), pages 1-13, April.
    19. 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.

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