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Innovation and economic performance in services. A firm level analysis

Listed author(s):
  • Maria Savona

    ()

    (CLERSE - Centre lillois d'études et de recherches sociologiques et économiques - CNRS - Université Lille 1 - Sciences et technologies)

  • Giulio Cainelli
  • Rinaldo Evangelista

This paper explores the two-way relationship between innovation and economic performance in services using a longitudinal firm-level dataset which matches data from the second Community Innovation Survey, CIS II (1993--95), against a set of economic variables provided by the System of Enterprise Accounts (1993--98). The results presented show that innovation is positively affected by past economic performance and that innovation activities (especially investments in ICTs) have a positive impact on both growth and productivity. Furthermore, productivity and innovation act as a self-reinforcing mechanism, which further boosts economic performance. These findings provide empirical support for the endogenous nature of innovation in services and the presence in this sector of competition models and selection mechanisms based on innovation. Copyright 2006, Oxford University Press.

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Paper provided by HAL in its series Post-Print with number halshs-00231578.

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Date of creation: 2006
Publication status: Published in Cambridge Journal of Economics, Oxford University Press (OUP), 2006, p. 435-458
Handle: RePEc:hal:journl:halshs-00231578
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00231578
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

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