The impact of innovation on economic performance in services

Giulio Cainelli, Rinaldo Evangelista and Maria Savona ()

The Service Industries Journal, 2004, vol. 24, issue 1, 116-130

Abstract: This article empirically explores the relationship between innovation and economic performance in services at the firm level. The empirical analysis is based on a unique longitudinal firm-level data set, which matches the Italian Community Innovation Survey (CIS II) data (1993--1995) and a set of economic indicators provided by the Italian System of Enterprise Account (1993--1998). In particular the empirical analysis aims at assessing whether the presence of innovation and the amount of resources devoted to innovation are able to explain the economic performance of firms in the service sector. The results presented show that innovating firms out perform non-innovating firms in terms of productivity levels and economic growth. Productivity is also found to be linked to the amount of innovation expenditures, especially those devoted to the acquisition and internal development of new software.

Date: 2004
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Citations: View citations in EconPapers (49)

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Working Paper: The Impact of Innovation on Economic Performance in Services (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:taf:servic:v:24:y:2004:i:1:p:116-130

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DOI: 10.1080/02642060412331301162

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