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Explaining Innovative Activity In Service Industries: Micro Data Evidence For Switzerland

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  • Spyros Arvanitis

Abstract

In this paper, we analysed empirically the innovative behaviour of firms in the Swiss service sector building on the wide consent in economic literature that demand prospects, type and intensity of competition, market structure, factors governing the production of knowledge (appropriability, technological opportunities), financing conditions as well as firm size are the main determinants of a firm's innovative activity. For the empirical work, we used firm data from nine service industries collected by the Swiss Innovation Survey 1999. We obtained a pattern of explanation of the innovative activity which looked quite plausible across the different types of innovation measures used (input-oriented and output-oriented innovation variables); it was also consistent to that found earlier for manufacturing. In general, the empirical model captured rather the characteristics of the basic decision to innovate rather than those of the decision to choose some level of innovative activity.

Suggested Citation

  • Spyros Arvanitis, 2008. "Explaining Innovative Activity In Service Industries: Micro Data Evidence For Switzerland," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(3), pages 209-225.
  • Handle: RePEc:taf:ecinnt:v:17:y:2008:i:3:p:209-225
    DOI: 10.1080/10438590601004220
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    References listed on IDEAS

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    1. Faïz Gallouj, 2002. "Innovation in the Service Economy," Books, Edward Elgar Publishing, number 2391.
    2. Gellatly, Guy & Peters, Valerie, 2000. "Understanding the Innovation Process: Innovation in Dynamic Service Industries," Analytical Studies Branch Research Paper Series 2000127e, Statistics Canada, Analytical Studies Branch.
    3. Faïz Gallouj, 2002. "Innovation in the service economy: the new wealth of nations," Post-Print halshs-00198409, HAL.
    4. Geroski, Paul A., 1995. "Market Structure, Corporate Performance, and Innovative Activity," OUP Catalogue, Oxford University Press, number 9780198288558.
    5. Faridah Djellal & Faïz Gallouj, 2000. "Innovation surveys for service industries: a review," Post-Print halshs-01113813, HAL.
    6. Jean Gadrey & Faïz Gallouj (ed.), 2002. "Productivity, Innovation and Knowledge in Services," Books, Edward Elgar Publishing, number 2690.
    7. Gallouj, Faiz, 2002. "Innovation in services and the attendant old and new myths," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 31(2), pages 137-154.
    8. Faïz Gallouj, 2002. "Innovation in services and the attendant myths," Post-Print halshs-00006854, HAL.
    9. Gellatly, Guy, 2000. "Differences in Innovator and Non-innovator Profiles: Small Establishments in Business Services," Analytical Studies Branch Research Paper Series 2000143e, Statistics Canada, Analytical Studies Branch.
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    Cited by:

    1. repec:eee:wdevel:v:99:y:2017:i:c:p:75-94 is not listed on IDEAS
    2. Paul H. Jensen & Elizabeth Webster, 2009. "Another Look At The Relationship Between Innovation Proxies ," Australian Economic Papers, Wiley Blackwell, vol. 48(3), pages 252-269, September.
    3. Elizabeth Webster, 2004. "Firms' decisions to innovate and innovation routines," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(8), pages 733-745.
    4. Harald Strotmann & Andreas Koch, 2005. "Determinants of Innovative Activity in Newly Founded Knowledge Intensive Business Service Firms," IAW Discussion Papers 21, Institut für Angewandte Wirtschaftsforschung (IAW).
    5. 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.
    6. Mairesse, Jacques & Mohnen, Pierre, 2010. "Using Innovation Surveys for Econometric Analysis," Handbook of the Economics of Innovation, Elsevier.
    7. Hajjem, Olfa & Ayadi, Mohamed & Garrouste, Pierre, 2011. "Complementarities between organizational changes, R&D activity and technological cooperation for the French manufacturing firms," MPRA Paper 34617, University Library of Munich, Germany.
    8. repec:spr:svcbiz:v:11:y:2017:i:3:d:10.1007_s11628-016-0321-6 is not listed on IDEAS
    9. 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.
    10. William Griffiths & Elizabeth Webster, 2009. "What Governs Firm-Level R&D: Internal or External Factors?," Melbourne Institute Working Paper Series wp2009n13, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    11. Fernandes, Cristina & Ferreira, João & Marques, Carla, 2011. "KIBS Innovation Management Capability in Rural Portuguese Regions: Empirical Evidence," MPRA Paper 47005, University Library of Munich, Germany.
    12. Spyros Arvanitis & Juliette von Arx, 2004. "Bestimmungsfaktoren der Innovationstätigkeit und deren Einfluss auf Arbeitsproduktivität, Beschäftigung und Qualifikationsstruktur," KOF Working papers 04-91, KOF Swiss Economic Institute, ETH Zurich.
    13. Spyros Arvanitis & Euripidis N. Loukis, 2014. "Investigating the effects of ICT on innovation and performance of European hospitals," KOF Working papers 14-366, KOF Swiss Economic Institute, ETH Zurich.
    14. Caroline Mothe & Nguyen-Thi Thuc Uyen, 2012. "The impact of non-technological on technological innovations: do services differ from manufacturing? An empirical analysis of Luxembourg firms," Post-Print hal-00919216, HAL.
    15. Jenny Meyer, 2010. "Does Social Software Support Service Innovation?," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 17(3), pages 289-311.
    16. Juana Sanchez, 2014. "Innovation Output Choices And Characteristics Of Firms In The U.S," Working Papers 14-42, Center for Economic Studies, U.S. Census Bureau.
    17. William Griffiths & Elizabeth Webster, 2004. "The determinants of research and development and intellectual property usage among Australian Companies, 1989 to 2002," Centre for International Economic Studies Working Papers 2004-15, University of Adelaide, Centre for International Economic Studies.
    18. MOTHE Caroline & NGUYEN Thi Thuc Uyen, 2011. "Do firms rely on sources of information for organizational innovation?," LISER Working Paper Series 2011-39, LISER.
    19. Ljiljana Božić & Pierre Mohnen, 2016. "Determinants of Innovation in Croatian SMEs – Comparison of Service and Manufacturing Firms," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 28(1), pages 7-27.
    20. Spyros Arvanitis & Euripidis N. Loukis, 2016. "Investigating the effects of ICT on innovation and performance of European hospitals: an exploratory study," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(4), pages 403-418, May.

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    Keywords

    Innovation; Services;

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