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Commercialization of Innovations and Firm Performance

The decision on investment in R&D is very important and highly risky for firms’ performance and survival in their business. This paper focuses on the commercialization of firms’ investment in innovation and how these decisions affect their performance. The study uses a large innovation survey of Danish firms holding information on their R&D investment as well as their expenses on marketing which gives knowledge of the commercialization of their innovations. The results suggest a highly significant commercialization of innovation, which means that firms’ follows a strategy of investment both in innovation and marketing making R&D and marketing complements in their investment decision. However, there is only week evidence for the hypothesis that commercialization of innovations also creates more value for the firms in the short run.

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File URL: http://research.asb.dk/fbspretrieve/3852/wp_08-26
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Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 08-26.

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Length: 28 pages
Date of creation: 01 Jan 2008
Date of revision:
Handle: RePEc:hhs:aareco:2008_026
Contact details of provider: Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/departments/nat.aspx

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