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Innovation and corporate performance in the Spanish regions

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  • González-Fernández, Marcos
  • González-Velasco, Carmen

Abstract

This paper analyzes the relationship between corporate performance and innovative effort for a set of Spanish companies during the 2007–2013 period. For this purpose, we use a panel data model. We find evidence that the return on equity (ROE) and, in particular, sales revenues are positively influenced by corporate innovation. Moreover, we also find evidence that this positive relationship is stronger in large companies. The analysis regarding the age of the company indicates that, in start-ups or younger companies, innovation effort has a greater effect on corporate performance than in older companies.

Suggested Citation

  • González-Fernández, Marcos & González-Velasco, Carmen, 2018. "Innovation and corporate performance in the Spanish regions," Journal of Policy Modeling, Elsevier, vol. 40(5), pages 998-1021.
    • Handle: RePEc:eee:jpolmo:v:40:y:2018:i:5:p:998-1021
    DOI: 10.1016/j.jpolmod.2018.05.005
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    More about this item

    Keywords

    Innovation; Corporate performance; SME; ROE; Sales revenues;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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