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Does Innovation Mediate Good Firm Performance?

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  • Llanto, Gilberto M.
  • del Prado, Fatima Lourdes E.

Abstract

Aside from physical capital and human resource, private firms are also advised to invest in innovations to be more productive and profitable. However, it is important to ensure such investment is well-spent. This study found that product and process innovations do lead to increase in sales and profits, and improve labor productivity. It also showed that firm size, age, and foreign equity are important factors leading firms to innovate.

Suggested Citation

  • Llanto, Gilberto M. & del Prado, Fatima Lourdes E., 2016. "Does Innovation Mediate Good Firm Performance?," Research Paper Series RPS 2016-02, Philippine Institute for Development Studies.
  • Handle: RePEc:phd:rpseri:rps_2016-02
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    Keywords

    Philippines; innovation; small and medium enterprises; process innovation; firm performance; product innovation; SMEs;

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