Innovation and the growth of service companies: the variety of firm activities and industry effects

Krzysztof Szczygielski, Wojciech Grabowski and Richard Woodward

Industry and Innovation, 2017, vol. 24, issue 3, 249-262

Abstract: This paper examines the relationship between innovation performance and employment growth in firms by taking a closer look at specific innovation activities and industry effects in the context of the services sector. Firm-level CIS data on Polish services firms in 2004–2009 are analysed using robust M-estimation. The results indicate that the effects of product, process and organisational innovations depend strongly on the level of technological opportunities in the industry in question. Given the widely acknowledged role of marketing innovations in services, possible synergies between innovations in the form of new products and new marketing techniques are also analysed. We demonstrate that marketing innovations are conducive to firm growth if they complement product innovations, but they are less likely to foster growth when applied in isolation.

Date: 2017
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DOI: 10.1080/13662716.2016.1232191

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