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Measuring Innovation in European Industry

  • Rinaldo Evangelista
  • Tore Sandven
  • Giorgio Sirilli
  • Keith Smith

This paper analyses the results of the 1993 Community Innovation Survey (CIS). Fifty per cent of European firms introduced a product or process innovation during 1990-92. The share of innovating firms varies between industrial sectors and firm size. The percentage of innovating firms is higher for large firms than for smaller ones. In high-tech sectors this share is two thirds and for traditional ones is one third. The largest part of firms' expenditure for innovation is linked to the adoption and diffusion of technologies through machinery and equipment, which absorbs 50% of firms' innovation expenditure. R&D activities represent, on average, 20% of total innovation expenditure while other innovative activities, such as design and trial production, account respectively for 10% and 11%. The mix of innovation inputs, especially R&D and investment, is strongly correlated with firm size, displays little change across countries and varies greatly across industries.

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File URL: http://www.tandfonline.com/10.1080/13571519884413
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Article provided by Taylor & Francis Journals in its journal International Journal of the Economics of Business.

Volume (Year): 5 (1998)
Issue (Month): 3 ()
Pages: 311-333

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Handle: RePEc:taf:ijecbs:v:5:y:1998:i:3:p:311-333
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  1. Keith Smith & Georgio Sirilli & Tore Sandven & Rinaldo Evangelista, . "Innovation Expenditures in European Industry," STEP Report series 199705, The STEP Group, Studies in technology, innovation and economic policy.
  2. Alvin K. Klevorick & Richard C. Levin & Richard R. Nelson & Sidney G. Winter, 1993. "On the Sources and Significance of Interindustry Differences in Technological Opportunities," Cowles Foundation Discussion Papers 1052, Cowles Foundation for Research in Economics, Yale University.
  3. Cohen, Wesley M. & Levin, Richard C., 1989. "Empirical studies of innovation and market structure," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 18, pages 1059-1107 Elsevier.
  4. Archibugi, Daniele & Cesaratto, Sergio & Sirilli, Giorgio, 1991. "Sources of innovative activities and industrial organization in Italy," Research Policy, Elsevier, vol. 20(4), pages 299-313, August.
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