Cainelli, Giulio, Evangelista, Rinaldo and Savona, Maria (2004) The impact of innovation on economic performance in services. Service Industries Journal, 24 (1). pp. 116-130. ISSN 0264-2069

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Abstract

This paper explores the two-ways relationships 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
CIS2 data (1993-95) and a set of economic variables provided by the Italian Production Survey (1993-98). In
particular, the empirical analysis aims at disentangling: i) the impact of innovation on the economic
performance of firms, in terms of productivity and growth; ii) the reverse casual effect, that is the impact of
past economic performance on firms’ innovation activities.
The results presented show that the high level of productivity and growth boost innovation. Further,
innovation has a positive impact both on growth and productivity. In particular, the higher is the level of
innovation expenditure in ICTs, the better is the economic performance of firms in terms of productivity.

Item Type:	Article
Schools and Departments:	University of Sussex Business School > SPRU - Science Policy Research Unit
Depositing User:	Maria Savona
Date Deposited:	06 Feb 2012 20:18
Last Modified:	05 Jul 2012 13:52
URI:	http://sro.sussex.ac.uk/id/eprint/25303

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