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

  • 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)

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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Paper provided by Centre for Applied Mathematics and Economics (CEMAPRE), School of Economics and Management (ISEG), Technical University of Lisbon in its series CEMAPRE Working Papers with number 1201.

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Length: 17 pages
Date of creation: Oct 2012
Date of revision:
Handle: RePEc:cma:wpaper:1201
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