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Innovation, growth and value creation: a study of Indian companies

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  • Aditya Jhunjhunwala
  • Tamal Datta Chaudhuri

Abstract

The paper examines the extent of innovativeness of Indian companies, analyses the impact of innovation on growth of these companies and assesses the relationship between innovation and value creation. The study is based on published data available from annual reports of companies. Three types of innovation are considered namely product innovation, marketing innovation and process innovation. Process innovation is derived from movement in the incremental output capital ratio of companies over two time periods. The study relates innovativeness to age, size and nature of the industry. Among other things, the paper has implications with respect to strategy formulation as it seeks to answer whether innovativeness depends on the nature of the industry, whether innovative companies in India have created value, or are they innovating to merely stay in the business.

Suggested Citation

  • Aditya Jhunjhunwala & Tamal Datta Chaudhuri, 2021. "Innovation, growth and value creation: a study of Indian companies," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 25(3), pages 328-352.
    • Handle: RePEc:ids:ijbire:v:25:y:2021:i:3:p:328-352
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