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Innovation and firm performance

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  • Jeroen de Jong
  • Ron Kemp
  • Mickey Folkeringa
  • Wubben

Abstract

Understanding the relation between innovation and performance in both large, medium, and small firms is of crucial importance for ongoing economic growth, but still hardly understood. The topic of understanding innovations and their relationship with firm performance has become more relevant since the EU stated, in March 2000 in Lisbon, the ambition to become the world's most competitive and innovative region by 2010. The underlying rationale is that encouraging firms to innovate will lead to a better economic performance; higher growth, more jobs and higher wages. Is this rationale empirically validated, and is there a preferential one-size-fits-all innovation trajectory for all European companies? The objective of this paper is to depict the current state of knowledge regarding the relation between innovation and performance in general, and for SMEs in particular.

Suggested Citation

  • Jeroen de Jong & Ron Kemp & Mickey Folkeringa & Wubben, 2003. "Innovation and firm performance," Scales Research Reports N200213, EIM Business and Policy Research.
    • Handle: RePEc:eim:papers:n200213
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