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Determinants of innovation in a small open economy: a multidimensional perspective

  • Lu�sa Carvalho
  • Teresa Costa
  • Jorge Caiado

This paper uses logistic regression analysis to examine how intramural and extramural R&D, acquisition of machinery, equipment and software, acquisition of external knowledge, training, market introduction and other procedures and technical preparations determine the innovation behaviour of manufacturing and service firms. We adopt a multidimensional view of innovation by considering product, process, organizational and marketing innovations as dependent variables separately. The study reports on the Community Innovation Survey (CIS4) of a small open-economy country. The empirical results indicate that intramural R&D has a positive impact on innovation. In contrast, the influence of extramural R&D on innovation is unclear. All innovation activities contribute towards organizational innovation. The study also suggests that there are no significant differences between services and manufacturing firms concerning the propensity to innovation.

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File URL: http://hdl.handle.net/10.3846/16111699.2012.701225
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Article provided by Taylor & Francis Journals in its journal Journal of Business Economics and Management.

Volume (Year): 14 (2013)
Issue (Month): 3 (June)
Pages: 583-600

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Handle: RePEc:taf:jbemgt:v:14:y:2013:i:3:p:583-600
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