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Innovative events: product launches, innovation and firm performance

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  • Nathan, Max
  • Rosso, Anna

Abstract

In this paper, we shed new light on the links between firm-level innovation and growth. We introduce data that capture a difficult-to-observe aspect of firms' innovative activity – new product/service launches – at scale. We show that our novel measures complement existing innovation metrics. We build a simple framework covering firm-level innovation, launches and revenue productivity. Then, we show positive linkages between past patenting and launches and between launches and performance for a large panel of small and medium-sized enterprises (SMEs) in the UK. We go on to explore the roles of age, size, industry and product/service quality in these relationships. A subset of SMEs with high-quality launches explains our results.

Suggested Citation

  • Nathan, Max & Rosso, Anna, 2022. "Innovative events: product launches, innovation and firm performance," Research Policy, Elsevier, vol. 51(1).
    • Handle: RePEc:eee:respol:v:51:y:2022:i:1:s0048733321001700
    DOI: 10.1016/j.respol.2021.104373
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    Keywords

    innovation; productivity; ICT; data science;
    All these keywords.

    JEL classification:

    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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