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

• Published in: Journal of business economics and management Vol. 14; no. 3; pp. 583 - 600
• Main Authors: Carvalho, Luísa, Costa, Teresa, Caiado, Jorge
• Format: Journal Article
• Language: English
• Published: Vilnius Gediminas Technical University 01-06-2013; Taylor & Francis Group
• Subjects: Analysis; Business creativity; CIS; Economic aspects; Economy; Forecasts and trends; innovation; Innovations; manufacturing firms; Organizational change; service firms; Software; Surveys; United States; Portugal; innovation; manufacturing firms; service firms; L80; L60; CIS; O30; O32
• ISSN: 1611-1699; 2029-4433
• DOI: 10.3846/16111699.2012.701225

This paper uses logistic regression analysis to examine how intramural and extramural RD, 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 RD has a positive impact on innovation. In contrast, the influence of extramural RD 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.