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

Author

Listed:
  • Luisa Carvalho

    (School of Business Administration, ESCE/Polytechnic Institute of Setubal)

  • Teresa Costa

    (School of Business Administration, ESCE/Polytechnic Institute of Setubal)

  • Jorge Caiado

    (CEMAPRE, School of Economics and Management (ISEG), Technical University of Lisbon)

Abstract

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.

Suggested Citation

  • Luisa Carvalho & Teresa Costa & Jorge Caiado, 2012. "Determinants of innovation in a small open economy: A multidimensional perspective," CEMAPRE Working Papers 1201, Centre for Applied Mathematics and Economics (CEMAPRE), School of Economics and Management (ISEG), Technical University of Lisbon.
  • Handle: RePEc:cma:wpaper:1201
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    References listed on IDEAS

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    Cited by:

    1. repec:wsi:ijimxx:v:18:y:2014:i:04:n:s1363919614500224 is not listed on IDEAS
    2. Egbetokun, Abiodun A., 2015. "Interactive learning and firm-level capabilities in latecomer settings: The Nigerian manufacturing industry," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 231-241.
    3. 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.
    4. repec:gam:jsusta:v:9:y:2017:i:7:p:1193-:d:103851 is not listed on IDEAS
    5. Egbetokun A. & Oluwatope O. & Adeyeye D. & Sanni M., 2014. "The role of industry and economic context in open innovation: Evidence from Nigeria," MERIT Working Papers 073, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Sanchez, Juana, 2014. "Non-technological and Mixed Modes of Innovation in the United States. Evidence from the Business Research and Development and Innovation Survey, 2008-2011," MPRA Paper 58719, University Library of Munich, Germany.
    7. repec:spr:jknowl:v:9:y:2018:i:2:d:10.1007_s13132-018-0520-6 is not listed on IDEAS

    More about this item

    Keywords

    Innovation; manufacturing firms; service firms; CIS;

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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