Is the most innovative firm in the world really innovative?

Jiří Mihola, Petr Wawrosz and Jana Kotěšovcová ()

International Advances in Economic Research, 2015, vol. 21, issue 1, 54 pages

Abstract: The essence of knowledge economics is a permanent innovation process and the implementation of intense development factors. Decision-making about innovation is strategic and crucial. It is thus useful to have a sufficiently universal, practicable, and clear analysis of how successful a particular innovation is. Our paper suggests a method for evaluating process and organizational innovation which does not require a great amount of input information, only data about company costs and revenues, which are, at least for the company management, easily accessible. The outputs of the method are the values of the dynamic parameter of intensity and the dynamic parameter of extensity. The first one evaluates the share of change in intensive factors on a firm’s development, whereas the second one fulfils the same function for change in extensive factors. The sum of both parameters equals 1, or 100 % in percentage terms. The parameters are able to describe all possible types of firm development, which are summarized in the paper. The proposed methodology is applied to Nike, whose performance is compared to six other prominent, innovative U.S. companies (Amazon, Apple, Coca Cola, Google, Ford Motor Company, and Target). Our analysis, however, shows that the development of most of them is based on extensive factors. The most intensive firm is the Ford Motor Company, where growth in intensive factors offsets and even outweighs the decline in extensive factors. Copyright International Atlantic Economic Society 2015

Keywords: Company productivity; Efficiency; Process and organizational innovation; Intensity; Extensity; G30; M21; O10; O40; C33 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1007/s11294-014-9512-x (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:iaecre:v:21:y:2015:i:1:p:41-54:10.1007/s11294-014-9512-x

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11294

DOI: 10.1007/s11294-014-9512-x

Access Statistics for this article

International Advances in Economic Research is currently edited by Katherine S. Virgo

More articles in International Advances in Economic Research from Springer, International Atlantic Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().