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Innovation performance across Europe

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  • Jeroen Hinloopen

Abstract

The innovation performance of firms is primarily determined by their own innovative activities and the interaction with their innovation-related environment. This environment typically differs among countries. We assess empirically these differences on firms' innovation performance. To that end we first estimate the relationship between an aggregate innovation input measure and an aggregate innovation output measure, thereby explicitly controlling for structural differences between countries. We then consider the extent to which firms located in a particular country perform better or worse than this estimated benchmark performance. The analysis is based on a panel dataset that we have constructed from Eurostat's first and second Community Innovation Survey. In order to control for possible data contamination we employ an outlier-robust estimator. It appears that among the fourteen countries considered Italy, Germany and Ireland offer an environment that facilitates most the transformation of innovation-related inputs into commercial outputs while the environment in Denmark is the least facilitating.

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  • Jeroen Hinloopen, 2003. "Innovation performance across Europe," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(2), pages 145-161.
    • Handle: RePEc:taf:ecinnt:v:12:y:2003:i:2:p:145-161
    DOI: 10.1080/10438590303125
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    2. A. Altuzarra & C. Puerta & F. Serrano, 2007. "Evaluating the Relative Innovative Position of European Union Member Countries: An Empirical Analysis," International Review of Applied Economics, Taylor & Francis Journals, vol. 21(1), pages 175-188.
    3. Mario Pianta & Andrea Vaona, 2007. "Innovation and Productivity in European Industries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(7), pages 485-499.
    4. Paul H. Jensen & Elizabeth Webster, 2004. "Examining Biases in Measures of Firm Innovation," Melbourne Institute Working Paper Series wp2004n10, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    5. Özden Altındağ & Volkan Öngel, 2021. "Information Management, Organizational Intelligence, and Innovation Performance Triangle: Empirical Research on Turkish IT Firms," SAGE Open, , vol. 11(4), pages 21582440211, November.
    6. Daniel Gonçalves & Ana Martins, 2016. "The Determinants of TFP Growth in the Portuguese Manufacturing Sector," GEE Papers 0062, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Nov 2016.
    7. Santos, David Ferreira Lopes & Basso, Leonardo Fernando Cruz & Kimura, Herbert, 2018. "The trajectory of the ability to innovate and the financial performance of the Brazilian industry," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 258-270.
    8. Štefan Bojnec & Imre Fertő, 2008. "European Enlargement and Agro‐Food Trade," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 563-579, December.
    9. 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.

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