IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/106858.html
   My bibliography  Save this paper

The Innovation-Sales Growth Nexus in Europe

Author

Listed:
  • Costantiello, Alberto
  • Laureti, Lucio
  • De Cristoforo, Gianluca
  • Leogrande, Angelo

Abstract

In this article we investigate the innovation-sales growth nexus in Europe. We use data from European Innovation Scoreboard of the European Commission in the period 2000-2019 for 36 countries. Data are analyzed using Panel Data with Random Effects, Fixed Effects, Dynamic Panel at 1 Stage, Pooled OLS, WLS. Results show that the impact of innovation on sales in Europe is positively associated with “Share Knowledge-Intensive Services”, “Turnover of Share Large Enterprises”, “Employment Impacts”, “Innovators”, “Intellectual Assets”, “Linkages” and is negatively associated with “Enterprise Births”, “Government Procurement of Advanced Technology Products”, “Share of Employment in High and Medium high-tech Manufacturing”.

Suggested Citation

  • Costantiello, Alberto & Laureti, Lucio & De Cristoforo, Gianluca & Leogrande, Angelo, 2021. "The Innovation-Sales Growth Nexus in Europe," MPRA Paper 106858, University Library of Munich, Germany, revised 28 Mar 2021.
    • Handle: RePEc:pra:mprapa:106858
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/106858/1/MPRA_paper_106858.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Martin Junge & Battista Severgnini & Anders Sørensen, 2016. "Product-Marketing Innovation, Skills, and Firm Productivity Growth," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(4), pages 724-757, December.
    2. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    3. Bagheri, Mahshid & Mitchelmore, Siwan & Bamiatzi, Vassiliki & Nikolopoulos, Konstantinos, 2019. "Internationalization Orientation in SMEs: The Mediating Role of Technological Innovation," Journal of International Management, Elsevier, vol. 25(1), pages 121-139.
    4. Xie, Xuemei & Huo, Jiage & Zou, Hailiang, 2019. "Green process innovation, green product innovation, and corporate financial performance: A content analysis method," Journal of Business Research, Elsevier, vol. 101(C), pages 697-706.
    5. Lorraine Uhlaner & André Stel & Valérie Duplat & Haibo Zhou, 2013. "Disentangling the effects of organizational capabilities, innovation and firm size on SME sales growth," Small Business Economics, Springer, vol. 41(3), pages 581-607, October.
    6. Suk Choi & Christopher Williams, 2014. "The impact of innovation intensity, scope, and spillovers on sales growth in Chinese firms," Asia Pacific Journal of Management, Springer, vol. 31(1), pages 25-46, March.
    7. Alicia Rodríguez & María Jesús Nieto, 2016. "Does R&D offshoring lead to SME growth? Different governance modes and the mediating role of innovation," Strategic Management Journal, Wiley Blackwell, vol. 37(8), pages 1734-1753, August.
    8. Pelin Demirel & Mariana Mazzucato, 2012. "Innovation and Firm Growth: Is R&D Worth It?," Industry and Innovation, Taylor & Francis Journals, vol. 19(1), pages 45-62, January.
    9. Elena Golovko & Giovanni Valentini, 2011. "Exploring the complementarity between innovation and export for SMEs’ growth," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(3), pages 362-380, April.
    10. David Audretsch & Alex Coad & Agustí Segarra, 2014. "Firm growth and innovation," Small Business Economics, Springer, vol. 43(4), pages 743-749, December.
    11. Lee, Ryeowon & Lee, Jong-Ho & Garrett, Tony C., 2019. "Synergy effects of innovation on firm performance," Journal of Business Research, Elsevier, vol. 99(C), pages 507-515.
    12. Pantano, Eleonora & Priporas, Constantinos-Vasilios & Sorace, Stefano & Iazzolino, Gianpaolo, 2017. "Does innovation-orientation lead to retail industry growth? Empirical evidence from patent analysis," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 88-94.
    13. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
    14. Wang, Guangping & Miao, C. Fred, 2015. "Effects of sales force market orientation on creativity, innovation implementation, and sales performance," Journal of Business Research, Elsevier, vol. 68(11), pages 2374-2382.
    15. Howell, Anthony, 2016. "Firm R&D, innovation and easing financial constraints in China: Does corporate tax reform matter?," Research Policy, Elsevier, vol. 45(10), pages 1996-2007.
    16. Bruno Cassiman & Giovanni Valentini, 2016. "Open innovation: Are inbound and outbound knowledge flows really complementary?," Strategic Management Journal, Wiley Blackwell, vol. 37(6), pages 1034-1046, June.
    17. Gregory Scott & Ian Chaston, 2013. "Open innovation in an emerging economy," Management Research Review, Emerald Group Publishing Limited, vol. 36(10), pages 1024-1036, September.
    18. Love, James H. & Roper, Stephen & Bryson, John R., 2011. "Openness, knowledge, innovation and growth in UK business services," Research Policy, Elsevier, vol. 40(10), pages 1438-1452.
    19. Fernández-Mesa, Anabel & Alegre, Joaquín, 2015. "Entrepreneurial orientation and export intensity: Examining the interplay of organizational learning and innovation," International Business Review, Elsevier, vol. 24(1), pages 148-156.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Leogrande, Angelo & Costantiello, Alberto & Laureti, Lucio, 2022. "The Export of Medium and High-Tech Products Manufactured in Europe," MPRA Paper 114215, University Library of Munich, Germany.
    2. Leogrande, Angelo & Costantiello, Alberto & Laureti, Lucio, 2021. "The Impact of Venture Capital Expenditures on Innovation in Europe," MPRA Paper 109897, University Library of Munich, Germany.
    3. Laureti, Lucio & Costantiello, Alberto & Matarrese, Marco Maria & Leogrande, Angelo, 2022. "The Employment in Innovative Enterprises in Europe," MPRA Paper 111335, University Library of Munich, Germany.
    4. Leogrande, Angelo & Costantiello, Alberto & Laureti, Lucio, 2022. "k-Means Clusterization and Machine Learning Prediction of European Most Cited Scientific Publications," MPRA Paper 114273, University Library of Munich, Germany.
    5. Leogrande, Angelo & Costantiello, Alberto, 2021. "Human Resources in Europe. Estimation, Clusterization, Machine Learning and Prediction," MPRA Paper 109749, University Library of Munich, Germany.
    6. Leogrande, Angelo & Costantiello, Alberto & Laureti, Lucio, 2022. "The Exports of Knowledge Intensive Services. A Complex Metric Approach," MPRA Paper 113348, University Library of Munich, Germany.
    7. Leogrande, Angelo, 2022. "The Export of High Knowledge Intensity Services of European Countries," MPRA Paper 112795, University Library of Munich, Germany.
    8. Leogrande, Angelo & Costantiello, Alberto & Laureti, Lucio, 2022. "The Impact of New Doctorate Graduates on Innovation Systems in Europe," MPRA Paper 114452, University Library of Munich, Germany.
    9. Costantiello, Alberto & Laureti, Lucio & Leogrande, Angelo, 2022. "Marketing and Organizational Innovations in Europe," MPRA Paper 114121, University Library of Munich, Germany.
    10. Leogrande, Angelo & Costantiello, Alberto & Laureti, Lucio, 2021. "The Broadband Penetration in Europe," MPRA Paper 110457, University Library of Munich, Germany.
    11. Laureti, Lucio & Costantiello, Alberto & Matarrese, Marco Maria & Leogrande, Angelo, 2022. "Enterprises Providing ICT Training in Europe," MPRA Paper 111756, University Library of Munich, Germany.
    12. Costantiello, Alberto & Laureti, Lucio & Leogrande, Angelo & Marco, Matarrese, 2021. "The Innovation Linkages in Europe," MPRA Paper 111038, University Library of Munich, Germany.
    13. Leogrande, Angelo, 2022. "The Employment Impact of Innovation in Europe," MPRA Paper 112517, University Library of Munich, Germany.
    14. Leogrande, Angelo & Costantiello, Alberto & Laureti, Lucio & Leogrande, Domenico, 2021. "The Determinants of Design Applications in Europe," MPRA Paper 110836, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alicia Rodríguez & María Jesús Nieto, 2016. "Does R&D offshoring lead to SME growth? Different governance modes and the mediating role of innovation," Strategic Management Journal, Wiley Blackwell, vol. 37(8), pages 1734-1753, August.
    2. D’Angelo, Alfredo & Ganotakis, Panagiotis & Love, James H., 2020. "Learning by exporting under fast, short-term changes: The moderating role of absorptive capacity and foreign collaborative agreements," International Business Review, Elsevier, vol. 29(3).
    3. Xie, Ronghui & Teo, Thompson S.H., 2022. "Green technology innovation, environmental externality, and the cleaner upgrading of industrial structure in China — Considering the moderating effect of environmental regulation," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    4. Chiho Ok & He Soung Ahn, 2019. "How Does Entrepreneurial Orientation Influence the Sustainable Growth of SMEs? The Role of Relative Performance," Sustainability, MDPI, vol. 11(19), pages 1-16, September.
    5. Juergensen, Jill Josefina & Narula, Rajneesh & Surdu, Irina, 2022. "A systematic review of the relationship between international diversification and innovation: A firm-level perspective," International Business Review, Elsevier, vol. 31(2).
    6. Nanditha Mathew & George Paily, 2022. "STI-DUI innovation modes and firm performance in the Indian capital goods industry: Do small firms differ from large ones?," The Journal of Technology Transfer, Springer, vol. 47(2), pages 435-458, April.
    7. Luis Javier Garcia-Martinez & Sascha Kraus & Matthias Breier & Andreas Kallmuenzer, 2023. "Untangling the relationship between small and medium-sized enterprises and growth: a review of extant literature," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 455-479, June.
    8. Bar-El, Raphael, 2023. "Reframing innovation: A case of split personality," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 111-122.
    9. Cagri Bulut & Secil Pelin Aka & Murat Nazli, 2021. "Strategic orientations toward technological innovativeness in the marble industry," SN Business & Economics, Springer, vol. 1(10), pages 1-14, October.
    10. Swati Agrawal & Poonam Singh & Mainak Mazumdar, 2021. "Innovation, Firm Size and Ownership: A Study of Firm Transition in India," International Journal of Global Business and Competitiveness, Springer, vol. 16(1), pages 15-27, June.
    11. Sorin Celea & Petre Brezeanu & Ana Petrina Păun, 2013. "Fiscal Discipline within the EU: Comparative Analysis," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 13(2), pages 23-30.
    12. Szalavetz, Andrea, 2002. "Az informatikai szektor és a felzárkózó gazdaságok [The informatics sector and the advancing economies]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 794-804.
    13. Asongu, Simplice & Boateng, Agyenim & Akamavi, Raphael, 2016. "Mobile Phone Innovation and Inclusive Human Development: Evidence from Sub-Saharan Africa," MPRA Paper 75046, University Library of Munich, Germany.
    14. Nicholas Tsounis & Ian Steedman, 2021. "A New Method for Measuring Total Factor Productivity Growth Based on the Full Industry Equilibrium Approach: The Case of the Greek Economy," Economies, MDPI, vol. 9(3), pages 1-21, August.
    15. Haddoud, Mohamed Yacine & Kock, Ned & Onjewu, Adah-Kole Emmanuel & Jafari-Sadeghi, Vahid & Jones, Paul, 2023. "Technology, innovation and SMEs' export intensity: Evidence from Morocco," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    16. Jeon, Heesang, 2015. "Knowledge and Contemporary Capitalism in Light of Marx's Value Theory," Thesis Commons g5njk, Center for Open Science.
    17. Mussarat Khan, 2016. "Contribution of female human capital in economic growth: an empirical analysis of Pakistan (1972–2012)," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(2), pages 709-728, March.
    18. Schilirò, Daniele, 2006. "Crescita economica, conoscenza e capitale umano. Le teorie e i modelli di crescita endogena di Paul Romer e Robert Lucas [Economic growth, knowledge and human capital. Theories and models of endoge," MPRA Paper 52435, University Library of Munich, Germany.
    19. Mathew, Nanditha & Paily, George, 2020. "STI-DUI innovation modes and firm performance in the Indian capital goods industry: Do small firms differ from large ones?," MERIT Working Papers 2020-008, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    20. Naeem AKRAM*, 2017. "Role of Public Debt in Economic Growth of Sri Lanka: An ARDL Approach," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 27(2), pages 189-212.

    More about this item

    Keywords

    Innovation; Open Innovation; Research and Development; Sales Growht; Firm Performance;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O35 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Social Innovation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:106858. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.