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Innovation and Performance: An Empirical Study of Russian Industrial Companies

In: Emerging Issues and Trends in INNOVATION AND TECHNOLOGY MANAGEMENT

Author

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  • Arkady Trachuk
  • Natalia Linder

Abstract

The paper investigates the relationship between investment in research and development (R&D), innovation expenses, and productivity of manufacturing companies. These empirical results have shown that innovation investments (1) improve the performance of industrial companies with the elasticity of 0.09; (2) innovation investment has an impact on the performance of the company, and the extent of this impact depends on the value of R&D investment and has a range of elasticity ranging from 0.03 (for low volumes of R&D investment) to 0.16 in high volumes of R&D investment; (3) the relationship between innovation investment and the growth of performance is nonlinear in nature and has a strong positive relationship only after a critical mass of innovation investment has been reached; (4) a significant role in the relationship of innovation investment and productivity is played by the features of the industry in which the company operates (the companies that operate in high-tech industries not only invest more in R&D and innovation but also have a better performance due to research and development); (5) companies of low-tech industries have a negative elasticity of innovation investment and productivity, which is due to the influence of unprofitable innovation investments (appropriability effect), i.e. additional profits from the investment are not significant.

Suggested Citation

  • Arkady Trachuk & Natalia Linder, 2021. "Innovation and Performance: An Empirical Study of Russian Industrial Companies," World Scientific Book Chapters, in: Alexander Brem (ed.), Emerging Issues and Trends in INNOVATION AND TECHNOLOGY MANAGEMENT, chapter 5, pages 101-124, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789811247729_0005
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    More about this item

    Keywords

    Radical Innovations; Innnovation Development Methods; Lead User Workshop; Disruptive Innovaton; Uber; IoT Ecosystem; New Product Development; Cross-industry Innovation; Boundary Spanning; Agile-Stage-Gate Hybrid Model;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O36 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Open Innovation

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