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Innovation and economic performance in services. A firm level analysis

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  • Maria Savona

    () (CLERSE - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille, Sciences et Technologies - ULCO - Université du Littoral Côte d'Opale - CNRS - Centre National de la Recherche Scientifique)

  • Giulio Cainelli
  • Rinaldo Evangelista

Abstract

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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  • Maria Savona & Giulio Cainelli & Rinaldo Evangelista, 2006. "Innovation and economic performance in services. A firm level analysis," Post-Print halshs-00231578, HAL.
  • Handle: RePEc:hal:journl:halshs-00231578 Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00231578
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    Keywords

    innovation; economic; performance; service;

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