Determinants of innovation in a small open economy: A multidimensional perspective

Luísa Carvalho, Teresa Costa and Jorge Caiado
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Teresa Costa: School of Business Administration, ESCE/Polytechnic Institute of Setubal

No 1201, CEMAPRE Working Papers from Centre for Applied Mathematics and Economics (CEMAPRE), School of Economics and Management (ISEG), Technical University of Lisbon

Abstract: This paper uses logistic regression analysis to examine how intramural and extramural R&D, acquisition of machinery, equipment and software, acquisition of external knowledge, training, market introduction and other procedures and technical preparations determine the innovation behaviour of manufacturing and service firms. We adopt a multidimensional view of innovation by considering product, process, organizational and marketing innovations as dependent variables separately. The study reports on the Community Innovation Survey (CIS4) of a small open-economy country. The empirical results indicate that intramural R&D has a positive impact on innovation. In contrast, the influence of extramural R&D on innovation is unclear. All innovation activities contribute towards organizational innovation. The study also suggests that there are no significant differences between services and manufacturing firms concerning the propensity to innovation.

Keywords: Innovation; manufacturing firms; service firms; CIS (search for similar items in EconPapers)
JEL-codes: L60 L80 O30 O32 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2012-10
New Economics Papers: this item is included in nep-cse, nep-ino, nep-knm, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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