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Explaining Innovative Activity In Service Industries: Micro Data Evidence For Switzerland

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  • Spyros Arvanitis

Abstract

In this paper, we analysed empirically the innovative behaviour of firms in the Swiss service sector building on the wide consent in economic literature that demand prospects, type and intensity of competition, market structure, factors governing the production of knowledge (appropriability, technological opportunities), financing conditions as well as firm size are the main determinants of a firm's innovative activity. For the empirical work, we used firm data from nine service industries collected by the Swiss Innovation Survey 1999. We obtained a pattern of explanation of the innovative activity which looked quite plausible across the different types of innovation measures used (input-oriented and output-oriented innovation variables); it was also consistent to that found earlier for manufacturing. In general, the empirical model captured rather the characteristics of the basic decision to innovate rather than those of the decision to choose some level of innovative activity.

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  • Spyros Arvanitis, 2008. "Explaining Innovative Activity In Service Industries: Micro Data Evidence For Switzerland," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(3), pages 209-225.
    • Handle: RePEc:taf:ecinnt:v:17:y:2008:i:3:p:209-225
    DOI: 10.1080/10438590601004220
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    References listed on IDEAS

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    Cited by:

    1. Paul H. Jensen & Elizabeth Webster, 2009. "Another Look At The Relationship Between Innovation Proxies," Australian Economic Papers, Wiley Blackwell, vol. 48(3), pages 252-269, September.
    2. Andreas Koch & Harald Strotmann, 2006. "Determinants of Innovative Activity in Newly Founded Knowledge Intensive Business Service Firms," International Studies in Entrepreneurship, in: Michael Fritsch & Juergen Schmude (ed.), Entrepreneurship in the Region, chapter 10, pages 195-224, Springer.
    3. Mairesse, Jacques & Mohnen, Pierre, 2010. "Using Innovation Surveys for Econometric Analysis," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1129-1155, Elsevier.
    4. Alarcón, José Carlos & Aguilar, Rocio & Galán, Jose Luis, 2019. "Determinants of innovation output in Spanish knowledge-intensive service firms: Stability analysis throughout the economic crisis of 2008," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 228-244.
    5. Caroline Danièle Mothe & Nguyen-Thi Thuc Uyen, 2012. "The impact of non-technological on technological innovations: do services differ from manufacturing? An empirical analysis of Luxembourg firms," Post-Print hal-00919216, HAL.
    6. Juana Sanchez, 2014. "Innovation Output Choices And Characteristics Of Firms In The U.S," Working Papers 14-42, Center for Economic Studies, U.S. Census Bureau.
    7. William Griffiths & Elizabeth Webster, 2004. "The determinants of research and development and intellectual property usage among Australian Companies, 1989 to 2002," Centre for International Economic Studies Working Papers 2004-15, University of Adelaide, Centre for International Economic Studies.
    8. Elizabeth Webster, 2004. "Firms' decisions to innovate and innovation routines," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(8), pages 733-745.
    9. Paul H. Jensen & Elizabeth Webster, 2004. "Examining Biases in Measures of Firm Innovation," Melbourne Institute Working Paper Series wp2004n10, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    10. Hajjem, Olfa & Ayadi, Mohamed & Garrouste, Pierre, 2011. "Complementarities between organizational changes, R&D activity and technological cooperation for the French manufacturing firms," MPRA Paper 34617, University Library of Munich, Germany.
    11. William Griffiths & Elizabeth Webster, 2009. "What Governs Firm-Level R&D: Internal or External Factors?," Melbourne Institute Working Paper Series wp2009n13, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    12. Spyros Arvanitis & Euripidis N. Loukis, 2014. "Investigating the effects of ICT on innovation and performance of European hospitals," KOF Working papers 14-366, KOF Swiss Economic Institute, ETH Zurich.
    13. Jenny Meyer, 2010. "Does Social Software Support Service Innovation?," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 17(3), pages 289-311.
    14. Ljiljana Božić & Pierre Mohnen, 2016. "Determinants of Innovation in Croatian SMEs – Comparison of Service and Manufacturing Firms," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 28(1), pages 7-27.
    15. Albert Amankwaa & Pattanee Susomrith & Pi-Shen Seet, 2022. "Innovative behavior among service workers and the importance of leadership: evidence from an emerging economy," The Journal of Technology Transfer, Springer, vol. 47(2), pages 506-530, April.
    16. Misraku Molla Ayalew & Zhang Xianzhi & Yidersal Dagnaw Dinberu & Demis Hailegebreal Hailu, 2020. "The Determinants of Firm’s Innovation in Africa," Journal of Industry, Competition and Trade, Springer, vol. 20(3), pages 527-567, September.
    17. Cristina Fernandes & João Ferreira & Carla Marques, 2015. "Innovation management capabilities in rural and urban knowledge intensive business services: empirical evidence," Service Business, Springer;Pan-Pacific Business Association, vol. 9(2), pages 233-256, June.
    18. Frank Crowley & Declan Jordan, 2022. "Do local start-ups and knowledge spillovers matter for firm-level R&D investment?," Urban Studies, Urban Studies Journal Limited, vol. 59(5), pages 1085-1102, April.
    19. Busom, Isabel & Vélez-Ospina, Jorge Andrés, 2017. "Innovation, Public Support, and Productivity in Colombia. A Cross-industry Comparison," World Development, Elsevier, vol. 99(C), pages 75-94.
    20. Maria de Lurdes Calisto & Soumodip Sarkar, 2017. "Innovation and corporate entrepreneurship in service businesses," Service Business, Springer;Pan-Pacific Business Association, vol. 11(3), pages 581-600, September.
    21. Fernandes, Cristina & Ferreira, João & Marques, Carla, 2011. "KIBS Innovation Management Capability in Rural Portuguese Regions: Empirical Evidence," MPRA Paper 47005, University Library of Munich, Germany.
    22. Spyros Arvanitis & Juliette von Arx, 2004. "Bestimmungsfaktoren der Innovationstätigkeit und deren Einfluss auf Arbeitsproduktivität, Beschäftigung und Qualifikationsstruktur," KOF Working papers 04-91, KOF Swiss Economic Institute, ETH Zurich.
    23. MOTHE Caroline & NGUYEN Thi Thuc Uyen, 2011. "Do firms rely on sources of information for organizational innovation?," LISER Working Paper Series 2011-39, Luxembourg Institute of Socio-Economic Research (LISER).

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    Innovation; Services;

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