IDEAS home Printed from https://ideas.repec.org/a/eee/respol/v39y2010i10p1253-1263.html
   My bibliography  Save this article

The economic impact of technological and organizational innovations. A firm-level analysis

Author

Listed:
  • Evangelista, Rinaldo
  • Vezzani, Antonio

Abstract

By using firm-level data provided by the last round of the (Italian) Community Innovation Survey (CIS4) this paper explores (in a manufacturing-services comparative framework) the relationship between technological and non-technological innovations and their impact on firms' performances. The empirical evidence presented shows that including the organizational dimension of innovation provides a much more comprehensive picture of the variegated universe of innovation in both macro-sectors. Four distinct innovation modes have been identified on the basis of the ways firms combine technological and non-technological innovations. These different modes of innovation are present and relevant in both manufacturing and service sectors and have been found to have a differentiated impact on firms' performances. Strategies characterized by the joint introduction of product, process and organizational innovations have been found to give to both manufacturing and service firms a clear competitive advantage vis à vis both non-innovating firms and firms with a narrow approach to innovation. A few significant differences between services and manufacturing firms in the relevance and economic impact of different types of innovation strategies have also been found.

Suggested Citation

  • Evangelista, Rinaldo & Vezzani, Antonio, 2010. "The economic impact of technological and organizational innovations. A firm-level analysis," Research Policy, Elsevier, vol. 39(10), pages 1253-1263, December.
    • Handle: RePEc:eee:respol:v:39:y:2010:i:10:p:1253-1263
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0048-7333(10)00176-9
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Surendra Gera & Wulong Gu, 2004. "The Effect of Organizational Innovation and Information and Communications Technology on Firm Performance," International Productivity Monitor, Centre for the Study of Living Standards, vol. 9, pages 37-51, Fall.
    2. Giovanni Dosi & Richard R. Nelson, 2000. "An Introduction to Evolutionary Theories in Economics," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 11, pages 327-346, Edward Elgar Publishing.
    3. Charles Edquist & Leif Hommen & Maureen McKelvey, 2001. "Innovation and Employment," Books, Edward Elgar Publishing, number 2138.
    4. Giulio Cainelli & Rinaldo Evangelista & Maria Savona, 2006. "Innovation and economic performance in services: a firm-level analysis," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 30(3), pages 435-458, May.
    5. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
    6. Francesco Crespi & Mario Pianta, 2008. "Demand and innovation in productivity growth," International Review of Applied Economics, Taylor & Francis Journals, vol. 22(6), pages 655-672.
    7. Birgitte Andersen & Jeremy Howells & Richard Hull & Ian Miles & Joanne Roberts (ed.), 2000. "Knowledge and Innovation in the New Service Economy," Books, Edward Elgar Publishing, number 2285.
    8. Zvi Griliches, 1992. "Introduction to "Output Measurement in the Service Sectors"," NBER Chapters, in: Output Measurement in the Service Sectors, pages 1-22, National Bureau of Economic Research, Inc.
    9. Faridah Djellal & Faïz Gallouj, 2008. "Measuring and Improving Productivity in Services," Books, Edward Elgar Publishing, number 12734.
    10. Drejer, Ina, 2004. "Identifying innovation in surveys of services: a Schumpeterian perspective," Research Policy, Elsevier, vol. 33(3), pages 551-562, April.
    11. Bogliacino, Francesco & Pianta, Mario, 2010. "Innovation and Employment: a Reinvestigation using Revised Pavitt classes," Research Policy, Elsevier, vol. 39(6), pages 799-809, July.
    12. Gu, Wulong Gera, Surendra, 2004. "The Effect of Organizational Innovation and Information Technology on Firm Performance," The Canadian Economy in Transition 2004007e, Statistics Canada, Economic Analysis Division.
    13. Bruce Tether, 2005. "Do Services Innovate (Differently)? Insights from the European Innobarometer Survey," Industry and Innovation, Taylor & Francis Journals, vol. 12(2), pages 153-184.
    14. Rinaldo Evangelista, 1999. "Knowledge and Investment," Books, Edward Elgar Publishing, number 1402.
    15. George Van Leeuwen & Luuk Klomp, 2006. "On the contribution of innovation to multi-factor productivity growth," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 367-390.
    16. Jean Gadrey & Faïz Gallouj, 1998. "The Provider-Customer Interface in Business and Professional Services," The Service Industries Journal, Taylor & Francis Journals, vol. 18(2), pages 01-15, April.
    17. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
    18. Faïz Gallouj, 2000. "Knowledge-intensive Business Services: Processing Knowledge and Producing Innovation," Post-Print halshs-01113809, HAL.
    19. Hans Loof & Almas Heshmati, 2006. "On the relationship between innovation and performance: A sensitivity analysis," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 317-344.
    20. Zvi Griliches, 1992. "Output Measurement in the Service Sectors," NBER Books, National Bureau of Economic Research, Inc, number gril92-1.
    21. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
    22. Rinaldo Evangelista, 2006. "Innovation in the European service industries," Science and Public Policy, Oxford University Press, vol. 33(9), pages 653-668, November.
    23. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
    24. Rinaldo Evangelista, 2000. "Sectoral Patterns Of Technological Change In Services," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 9(3), pages 183-222.
    25. Giovanni Dosi, 2000. "Sources, Procedures, and Microeconomic Effects of Innovation," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 2, pages 63-114, Edward Elgar Publishing.
    26. Jean Gadrey & Faïz Gallouj (ed.), 2002. "Productivity, Innovation and Knowledge in Services," Books, Edward Elgar Publishing, number 2690.
    27. Jean Gadrey & Faïz Gallouj, 2002. "Productivity, Innovation and Knowledge in Services. New Economic and Socio-Economic Approaches," Post-Print halshs-00198351, HAL.
    28. Hollenstein, Heinz, 2003. "Innovation modes in the Swiss service sector: a cluster analysis based on firm-level data," Research Policy, Elsevier, vol. 32(5), pages 845-863, May.
    29. Tether, Bruce S. & Tajar, Abdelouahid, 2008. "The organisational-cooperation mode of innovation and its prominence amongst European service firms," Research Policy, Elsevier, vol. 37(4), pages 720-739, May.
    30. Anita Wölfl, 2004. "Productivity Growth in Services Industries: Is There a Role for Measurement?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 8, pages 66-80, Spring.
    31. Bruce Tether, 2003. "The sources and aims of innovation in services: Variety between and within sectors," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(6), pages 481-505.
    32. repec:crs:wpaper:9833 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    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 & Maria Savona, 2010. "Innovation and Employment in Services," Chapters, in: Faïz Gallouj & Faridah Djellal (ed.), The Handbook of Innovation and Services, chapter 16, Edward Elgar Publishing.
    2. Bogliacino, Francesco & Pianta, Mario, 2011. "Engines of growth. Innovation and productivity in industry groups," Structural Change and Economic Dynamics, Elsevier, vol. 22(1), pages 41-53, February.
    3. Bettina Peters & Rebecca Riley & Iulia Siedschlag & Priit Vahter & John McQuinn, 2014. "Innovation and Productivity in Services: Evidence from Germany, Ireland and the United Kingdom," JRC Working Papers on Corporate R&D and Innovation 2014-04, Joint Research Centre.
    4. Bettina Peters & Rebecca Riley & Iulia Siedschlag & Priit Vahter & John McQuinn, 2018. "Internationalisation, innovation and productivity in services: evidence from Germany, Ireland and the United Kingdom," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(3), pages 585-615, August.
    5. Faïz Gallouj & Maria Savona, 2009. "Innovation in services: a review of the debate and a research agenda," Journal of Evolutionary Economics, Springer, vol. 19(2), pages 149-172, April.
    6. Faïz Gallouj & Maria Savona, 2010. "Towards a Theory of Innovation in Services: A State of the Art," Chapters, in: Faïz Gallouj & Faridah Djellal (ed.), The Handbook of Innovation and Services, chapter 1, Edward Elgar Publishing.
    7. Mina, Andrea & Bascavusoglu-Moreau, Elif & Hughes, Alan, 2014. "Open service innovation and the firm's search for external knowledge," Research Policy, Elsevier, vol. 43(5), pages 853-866.
    8. Chang, Yuan-Chieh & Chen, Min-Nan, 2016. "Service regime and innovation clusters: An empirical study from service firms in Taiwan," Research Policy, Elsevier, vol. 45(9), pages 1845-1857.
    9. Dario Guarascio & Mario Pianta & Francesco Bogliacino, 2017. "Export, R&D and New Products: A Model and a Test on European Industries," Economic Complexity and Evolution, in: Andreas Pyka & Uwe Cantner (ed.), Foundations of Economic Change, pages 393-432, Springer.
    10. Trigo, Alexandre & Vence, Xavier, 2012. "Scope and patterns of innovation cooperation in Spanish service enterprises," Research Policy, Elsevier, vol. 41(3), pages 602-613.
    11. Evangelista, Rinaldo & Lucchese, Matteo & Meliciani, Valentina, 2013. "Business services, innovation and sectoral growth," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 119-132.
    12. MOTHE Caroline & NGUYEN Thi Thuc Uyen, 2011. "Do firms rely on sources of information for organizational innovation?," LISER Working Paper Series 2011-39, Luxembourg Institute of Socio-Economic Research (LISER).
    13. Jeremy Howells, 2010. "Services and Innovation and Service Innovation: New Theoretical Directions," Chapters, in: Faïz Gallouj & Faridah Djellal (ed.), The Handbook of Innovation and Services, chapter 3, Edward Elgar Publishing.
    14. Alarcón, José Carlos & Aguilar, Rocio & Galán, Jose Luis, 2019. "Determinants of innovation output in Spanish knowledge-intensive service firms: Stability analysis throughout the economic crisis of 2008," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 228-244.
    15. Georgios Efthyvoulou & Priit Vahter, 2016. "Financial Constraints, Innovation Performance and Sectoral Disaggregation," Manchester School, University of Manchester, vol. 84(2), pages 125-158, March.
    16. Frank Crowley & Jane Bourke, 2017. "The Influence Of Human Resource Management Systems On Innovation: Evidence From Irish Manufacturing And Service Firms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(01), pages 1-28, January.
    17. Nicola De Liso & Anna Serena Vergori, 2017. "The Different Approaches to the Study of Innovation in Services in Europe and the USA," Metroeconomica, Wiley Blackwell, vol. 68(1), pages 121-146, February.
    18. Fulvio Castellacci, 2007. "Technological regimes and sectoral differences in productivity growth ," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(6), pages 1105-1145, December.
    19. Fulvio Castellacci & Jinghai Zheng, 2010. "Technological regimes, Schumpeterian patterns of innovation and firm-level productivity growth," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(6), pages 1829-1865, December.
    20. Cristina Fernandes & João Ferreira & Carla Marques, 2015. "Innovation management capabilities in rural and urban knowledge intensive business services: empirical evidence," Service Business, Springer;Pan-Pacific Business Association, vol. 9(2), pages 233-256, June.

    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:eee:respol:v:39:y:2010:i:10:p:1253-1263. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/respol .

    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.