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External vs Internal Determinants of Firm Technology Strategy:Evidence from the Polish Services Sector

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  • Krzysztof Szczygielski
  • Wojciech Grabowski
  • Richard Woodward

Abstract

Differences in the growth of firms remain a major topic in economics and strategy research.In this paper we investigated the link between innovation performance and employment growth. First we discuss the problem from the theoretical point of view and then we analyze the relationship between innovation performance and the dynamics of employment in the Polish service firms in 2004-2009. Firms that introduced new services or marketing techniques experienced stronger growth. Process innovations contributed to employment reduction. Tellingly, this effect could only be observed in 2008-2009, a subperiod which saw the lowest levels of aggregate demand. This conclusion yields support to the presumption formulated by Pianta (2005) that the impact of innovation on employment growth depends on the macroeconomic situation.

Suggested Citation

  • Krzysztof Szczygielski & Wojciech Grabowski & Richard Woodward, 2013. "External vs Internal Determinants of Firm Technology Strategy:Evidence from the Polish Services Sector," CASE Network Studies and Analyses 0454, CASE-Center for Social and Economic Research.
  • Handle: RePEc:sec:cnstan:0454
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    References listed on IDEAS

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    8. Krzysztof Szczygielski, 2011. "What are service sector innovations and how do we measure them?," CASE Network Studies and Analyses 422, CASE-Center for Social and Economic Research.
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    More about this item

    Keywords

    Technology Strategy; Poland; Services; Innovation;

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L8 - Industrial Organization - - Industry Studies: Services
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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