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


  • Spyros Arvanitis


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

    1. Barros, Pedro P & Nilssen, Tore, 1999. " Industrial Policy and Firm Heterogeneity," Scandinavian Journal of Economics, Wiley Blackwell, vol. 101(4), pages 597-616, December.
    2. Miyagiwa, Kaz & Ohno, Yuka, 1997. "Strategic R&D policy and appropriability," Journal of International Economics, Elsevier, vol. 42(1-2), pages 125-148, February.
    3. Poyago-Theotoky, Joanna, 1996. "R&D Competition with Asymmetric Firms," Scottish Journal of Political Economy, Scottish Economic Society, vol. 43(3), pages 334-342, August.
    4. Ana I. Saracho, 2002. "Patent Licensing Under Strategic Delegation," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 11(2), pages 225-251, June.
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    Cited by:

    1. 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).
    2. Mairesse, Jacques & Mohnen, Pierre, 2010. "Using Innovation Surveys for Econometric Analysis," Handbook of the Economics of Innovation, Elsevier.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. repec:eee:wdevel:v:99:y:2017:i:c:p:75-94 is not listed on IDEAS
    10. 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.
    11. 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.
    12. 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.
    13. repec:spr:svcbiz:v:11:y:2017:i:3:d:10.1007_s11628-016-0321-6 is not listed on IDEAS
    14. 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.
    15. 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.
    16. 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.
    17. 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.
    18. 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.
    19. MOTHE Caroline & NGUYEN Thi Thuc Uyen, 2011. "Do firms rely on sources of information for organizational innovation?," LISER Working Paper Series 2011-39, LISER.

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