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The relevance of marketing in the success of innovations

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Abstract

This paper focuses on marketing expenditures and their relation with R&D investments and innovative sales. A higher investment in R&D is associated with the production of a higher quality or faster innovation, with a positive impact on sales and in a macro sense, an increase of GDP. This paper raises the issue that good innovation need a strong marketing effort in order for this innovation to have an impact on sales, it needs to be desired by consumers. This paper finds empirical evidence that marketing expenditures explain a lot of the success of the innovation 0.5 to 0.7% (measured in terms of the elasticity of this effort to innovative sales), even more than the flow of investment in R&D(which counts for 0.3 %). In fact, the size of the coefficient for marketing doubles those found for R&D, a quite surprising result taking into consideration the little importance that marketing has in innovation studies. The paper uses Community Innovation Survey data, the third wave (CIS 3) and set up a system of simultaneous equations like in Crepon et al. (1998).

Suggested Citation

  • Abraham Garcia, 2011. "The relevance of marketing in the success of innovations," JRC Working Papers on Corporate R&D and Innovation 2011-09, Joint Research Centre (Seville site).
  • Handle: RePEc:ipt:wpaper:201109
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    Cited by:

    1. Sandro Montresor & Antonio Vezzani, 2016. "Intangible investments and innovation propensity: Evidence from the Innobarometer 2013," Industry and Innovation, Taylor & Francis Journals, vol. 23(4), pages 331-352, May.
    2. Daria Ciriaci & Fernando Hervas Soriano, 2012. "Bridging ideas with markets. The impact of training, marketing and design on innovation," JRC Working Papers JRC75493, Joint Research Centre (Seville site).
    3. Stephane Lhuillery, 2014. "Marketing and persistent innovation success," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 23(5-6), pages 517-543, September.

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